Partnership accounts

A/c entries 279 views 1 replies

X,Y,Z are Partners in XYZ partnership firm. X's capital account balance is 500000. however he draw 600000 from partnership firm( More than his capital balance). Is it accepatable? if so what is accounting entry?

while preparing financial statements balance 100000 (excess amount) shown as loans and advances in assets side of balance sheet, is it correct?

 

Replies (1)
You can show excess balance drawn as loans and advances.


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