Journal

This query is : Resolved

DEVENDER THAKUR (Querist)
Follow

09 September 2012 A car purchased by the name of one of the partner; Total payment like advance for booking and other expenses were paid by

the firm(partnership firm). Total bill amount if aprx 23 lac. Rs. 18 lac financed by the ICICI bank by the name of that partner.

and rest of payment made from the firm itself. Now the car will be shown in the books of firm. Loan will be repaid from the

firm.Depreciation to be claimed. How can we do it ? Can we claim the Interest on loan in the firm.?

CA VISHNU GAVKARE

CA VISHNU GAVKARE (Expert)
Follow

11 September 2012 yes you can. Assets can be bought on the name of partners as they have unlimited liability. Since firm will pay interest it can very well claim the same as an expense. and also using asset so can dep also