It can be Resolved by Trasfer Entry through Partner Current Account (Not capital Account)
Say For Example CAR Value, 10,00,000, Down Payment, 3,00,000, Loan Amount 7,00,000
Pass the entries as follows
CAR A/c Dr 10,00,000
To Partners Current A/c Cr 10,00,000 (Aquisition Value)
Partners Current A/c Dr 3,00,000
To Bank A/c Cr 3,00,000 (Down Payment)
Partners Current A/c Dr 7,00,000
To CAR Loan Account Cr 7,00,000 (Loan Amount)
Net Effect No balance in Partner Current a/c, CAR recorded in Books along with Loan and Down Payment
Capital Gains for Partner
Though we presented like above it amounts to Transfer of Capital Asset to Firm , which attracts Capital gain tax
But he need not pay anything because As per Sec 45(3) of Income Tax Act the sale consideration would be the amount recorded in the books of Firm
We are recording at purchase value only, so no gains on such transfer
We can also defend like this
Net amount paid to Partner is Nil as he is transferring both asset and liability, so No consideration , no tax
So record as specified above nobody will question