Ankit Agarwal (student) 30 March 2020
In a partnership firm suppose( A)
One party (debtors) pay money from different person(third party) bank a/c and take Gst bill in his firm name.
Is is allowed or any legal complications for firm A??
Deepak Gupta (CA Student) 30 March 2020
I believe not...
As consideration means,
-> Any payment in money or otherwise
-> Whether by the recipient or by any other person*
* It is permissible under Indian Contract Act, for a ‘stranger’ (to the contract) to contribute towards consideration.
A will pass cross entry in their books of accounts for such payment.