John Ripath Prabhu (Accountant) (61 Points)
08 February 2010We are already running a Private company and we have started a partnership (Same Directors of the company are partners under Partnership) for doing another service.
So if we transfer some cash/bank balances from our company bank account to our Parnership bank account.
How it should be accounted in both the books?
Amir
(Learner)
(4016 Points)
Replied 08 February 2010
Dear John,
I think u mean to say "Loan"
IN THE BOOKS OF COMPANY
Loan to M/s ABC ......... Dr
To Bank A/c
IN THE BOOKS OF FIRM
Bank A/c...............Dr
To Loan From XYZ Pvt. Ltd.
Care to be taken
1) It should be by account payee check only
2) AS -18 requires disclosure in the notes to accounts of Balance Sheet of both Company & Firm
3) Loan may or may not carry interest, but better option is to give at some interest rate rather then giving interest free loan.
4) Tax auditor will mention in his report.
5) Due consideration should be given to TDS provision if it carries interest.
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 08 February 2010
Treatment Provided by Mr. Amir is correct.
regards,
ratan
CA Harish Suwalka
(Chartered Accountant ( Bhilwara ))
(4125 Points)
Replied 13 February 2010
| Originally posted by : Amir | ||
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Dear John, I think u mean to say "Loan" IN THE BOOKS OF COMPANY Loan to M/s ABC ......... Dr To Bank A/c IN THE BOOKS OF FIRM Bank A/c...............Dr To Loan From XYZ Pvt. Ltd. Care to be taken 1) It should be by account payee check only 2) AS -18 requires disclosure in the notes to accounts of Balance Sheet of both Company & Firm 3) Loan may or may not carry interest, but better option is to give at some interest rate rather then giving interest free loan. 4) Tax auditor will mention in his report. 5) Due consideration should be given to TDS provision if it carries interest. |
 |
Perfact answer
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