Company final accounts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2011 as per schedule 6,if there is an amount invested in the capital of a partnership firm, y is it shown under the heading investments and not loans ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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03 November 2011 It is investment only. not nature of loan

Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2011 sir,am asking the logic behind it

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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04 November 2011 If see the definition of investment
Investments are assets held by an enterprise for earning income by way of
dividends, interest, and rentals, for capital appreciation, or for other benefits
to the investing enterprise.

For loan there will be a pre-dermined rate of interest and for specific time period.

investment in partnerships is defiantly comes under investment as there is no fixed rate of earnings and specific time period.