query about capital introduced by partner

2117 views 1 replies

Kumar Gaurav

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

1624 Points Joined June 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)

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