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In a partnership firm partners personal car loan emi payment

Umesh Ch. Gautam (Sr. Accountant) (26 Points)

11 January 2018

In a partnership firm how to treat partners personal car loan's EMI payment in firm's account

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3 Replies

satish (teaching) (2046 Points)
Replied 13 January 2018

treat it as partner's drawings a/ c

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ROWAN BR (108 Points)
Replied 23 February 2018

pay from firm and show as a drawings in accounting

PARUL YADAV (finance expet) (93 Points)
Replied 26 June 2024

In a partnership firm, partners' personal car loan EMI payments are considered personal expenses and are not typically borne by the firm unless specified in the partnership agreement. The responsibility lies with the individual partner to manage their personal financial obligations, such as EMIs for car loans. Banks like Kotak Mahindra Bank offer various financing options for personal vehicles, ensuring partners can choose a suitable loan plan. However, these loans are unrelated to the partnership's financial dealings unless agreed upon otherwise. Therefore, partners must handle such commitments independently without involvement from the partnership's resources or finances.