Qualification > Commerce
Accounting HELP !!!
Monica:
You are talking about Partnership yes?
When a partner takes a loan there is an interest.
So Interest on partner's loan to firm :
Profit/loss acc Dr
Partners current acc Cr
holtadit:
--- Quote from: Shoshou..Mony on May 23, 2010, 06:01:59 pm ---You are talking about Partnership yes?
When a partner takes a loan there is an interest.
So Interest on partner's loan to firm :
Profit/loss acc Dr
Partners current acc Cr
--- End quote ---
When the Loan is first obtained we DEBIT BANK and Credit PARTNERS ACCOUNt (I am not talking about interest) - which account is CREDIETD ?? Current or Capital ??
contraentry:
According to me, a new account called loan will be opened and the partner will be treated as an external creditor. However the loan interest will be shown in the partner's current account.
holtadit:
--- Quote from: contraentry on May 23, 2010, 06:10:55 pm ---According to me, a new account called loan will be opened and the partner will be treated as an external creditor. However the loan interest will be shown in the partner's current account.
--- End quote ---
When the Loan is first obtained we DEBIT BANK and Credit PARTNERS ACCOUNt (I am not talking about interest) -
which account is CREDIETD ?? Partner's Current or Capital ??
nid404:
Hey Ari, the pm I sent you...checked it. It says it cannot be credited to the capital account...so current it is i guess.
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