Working Capital

Infusion of capital into business for running the business is as per norms of partnership agreement.

As proposed by you,

You can pass  a journal entry like Bank A/C 'Dr' and Loan from Director/Mr. Z A/C 'Cr'

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It's Pvt Ltd Co. sanyasachi,. not partnership firm

Pvt limited co. can also be partnership.
I am telling you the modalities.
there are procedures.
do not create a chaos always..

This forum is for a suitable reply for the query. If have no answer for query then it's ok. Skip it. It's bad to misuse Forum for whimsical posts without query reply.

@ Joseph
you cannot raise your capital above the authorised share capital but, if the board of director proposes there can always be a fresh capital infusion by raising the paid up capital just below the authorised capital.But here your authorised cap and paid up is same.
This is advisable when u will be executing a project.
Otherwise arrange for a working capital loan by hypothecating your stocks.
Avoid partners loan ./directors loan.
But, I would prefer figures and numbers.

@ Joseph
if you want real help..
send your mail.
sorry for my earlier reply.
I have not gone through it thoroughly.



@ kapu I think
passing a journal entry is not all a issue.
two accounts are effected.
This forum should not be for passing journal entries...
remain quite ...
answers ...
no whimsical posts please.

Sanyasachi all bluff stuff dumping. G8. 

JV reply is as per query.  you call your JV reply Golden Rule.   Too embarrassing. Worthless ????  

@ KAPU
WORTHLESS
STOP....

Hope you will soon stop being root cause. sanyasachi

Partnership company can be private limited.
who told you?

Everyone has a valid argument and my version is working capital is usually a bank loan or a uses reserves if it is not a start up. When expenses are incurred credit the bank balance. Once the operating cash cycle is complete, bank is automatically debited if the operation is success. 

Here, your working within Equity and classifying reserves for future use as working capital. There is no need to do anything in the final accounts because as and when cash is used from bank, reserves account can be debited for which you need new representations like:

Retained earnings a/c 

To Reserves a/c

because bank already holds the cash from reserves. No need to create any entry for bank and this is representation only

Expenses a/c 

To Bank a/c

cash used for production

Bank a/

 Sales a/c

Payables a/c

To Receivables a/c

To Bank a/c

a successful operating cycle completed. (This is just a representation)

in case if you take a loan

Bank a/c

To directors loan/ Loan a/c

I accidentally wrote cash sales and it’s sales which includes both cash and credit.