A partner ship firm purchase of property registered in partner name and property amount pay through partner ship firm bank account. question: above transaction treatment Books firm and partner in it act.
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Quick Summary
This discussion explores the accounting treatment for a property purchased by a partnership firm, but registered solely in a partner's name. Funds were drawn from the firm's bank account. The core question is how to record this transaction in the firm's and partner's books. Several solutions are proposed, including adjusting the partner's current account or treating it as a loan to the firm, with options for bringing the asset onto the firm's books through documentation.