capitalaccount

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survesh (Querist)
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14 January 2009 sir if the partners of x firm gives chq for fd for a new firm (y) the amount drawn can be debited in their x partner capital ac or accounted sepratly under current asset side

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 January 2009 If the amount paid to Y is towards capital contribution in Y,debit the amount in the current a/c of the the partners in the firm X. On the other hand if the nature of payment is on account of business transaction/loan better debit in current assets in the books of X.