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query about capital introduced by partner

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Kumar Gaurav

Going...to be C.A soon...

1055 Points Posted on 05 July 2007

hi all,

i m accountant of a reputed firm in haryana.our partner of firm introduced 80000/- as capital but he has withdraw 114000/- for his personal use.

can anybody tell me how can i show this in the books?

by showing loan to partner? or by anyway

thanks

gaurav

Replies (1)

Jayant Shaligram

Service

116 Points Posted on 05 July 2007

Hello friend, There need not be any loan. Simply a debit balance to the Capial Account of the Partner. At the time of finalisation and credit of Salary/Interest/Profit etc., this account balance may get into credit or it can be debit. No Harm. Jayant Shaligram