Withdrawals by director

is there any limit for a director of a partnership firm for cash withdrawal

Replies (5)

what mention in parnership firm is important

and if he withdrawal for self then his capital a/c shows debit balance (not good for firm )

Your question is not clear... The partner wants to withdraw cash for what purpose?

you talking about cash withdraw form bank?

Or the cash withdraw from limit from partnership firm?

cash withdrawal from firm for his personal expenses

You can make a ledger name Drawing a/c under capital group and debit the drawing a/c.

Or you directly debited the capital a/c.

There is no problem If capital balance will be shown as nagative or Dr. balance.

 

if the partners capital balance is negative and if the firm has borrowed capital, then interest on borrowed capital will be disallowed to the extent of debit balance in partners capital account (interest portion)

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