03 October 2008
I have a doubt in partnership accounts that whenever we take any money of partner and use it in a partnership firm then it is always considered as partner loan. but if we purchase goods or services from any partners and we pay it him afterwards can we consider it as creditors or as of any other liability or we have to consider it as a partner loan only. And so what is the logic behind this?
03 October 2008
If there is a liability towards purchase of goods from partners, it is classified as creditors for supply of goods. However it is exhibited separately, as we have to know the amount financed by partners under various categories, capital, loan and credit for goods.
CAclubindia
