Accounts and income tax

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Raghavendra (Querist)
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18 July 2013 In a Partnership Firm one of the Partner purchases a immovable property at Rs. 1.05 Crores. And he paid cash Rs.30 Lakhs and by Cheque Rs.15 Laks through Firms Bank Account. And a partner is agree to pay the balance amount after some days by cash or cheque. All sale agreements are in the Name of the Partner not Firm.
The Question is what is the accounting treatment in the Firms Books? How I treat?
And what is the tax implication regarding Cash payment?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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18 July 2013 IF PROPERTY IS IN PARTNERS NAME AND PAID FROM FIRMS A/C THEN IT SHOULD BE TREATED AS LOAN TO PARTNER AND BOOK ENTRY ACCORDINGLY.

CASH PAYMENT WILL BE DISALLOWED U/S 40A.