A firm has credit balance to be paid to a company. Partners of the firm have deposits given to the company in their individual capacity. Can they request company to adjust the outstanding of the firm to be settld with their deposits?
A firm has credit balance to be paid to a company. Partners of the firm have deposits given to the company in their individual capacity. Can they request company to adjust the outstanding of the firm to be settld with their deposits?
No, the partners of the firm cannot request the company to adjust the outstanding credit balance of the firm with their individual deposits. The credit balance of the firm and the deposits made by the partners are two separate transactions, and they cannot be set-off against each other without the mutual agreement of both parties.
What if they mutually agree for the same? They will mutually sign a document declaring their consent for mutual adjustment of personal account with firm and company accounts.
Is this admissible and ahreeable under the law?
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
View Details
CAclubindia
