Deficiency borne by Partner A
Atharv Sankliya (1354 Points)
06 November 2022
what is the journal entries for deficiency borne by Partner A because of guarantee given to C by A
1 Replies
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 06 November 2022
The deficiency is debited to A
Distribution of profits
Dr. P&L 15000
Cr A 10000
Cr C 5000
The loss of C 5000
Dr C 5000
Cr PL 5000
This is the usual method. When you have a deficienacy of 5000 but guaranteed by A to cover your loss
Dr. A 5000
Cr C 5000
These are capital accounts.
Recent Topics
- Softex For freelancer ?
- GST ON REIUMBURSEMENT ENTRY ON GST PORTAL
- Missing invoice in gst
- GST on consultancy
- Linking adhaar to UAN without employer
- WHETHER ITC REVERSAL TH. GSTR 3B OR DRC03
- Advance Tax For Freelancers
- Is fvu 8.8 version available ?
- Interest and penalty on advance tax shortfall
- Joint Account with 3 legal heirs.......
Related Threads
CAclubindia
