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Difference between partner loan and capital …

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Difference between partner loan and capital account

Posted by Vanshika Agarwal 6 years, 11 months ago

CBSE > Class 12 > Accountancy

1 answers

Yogita Ingle 6 years, 11 months ago

Amount invested/contributed by a partner in a partnership business is termed as partner's capital. Partner's capital A/c is an ownership/equity amount of business and forms the last liability of the firm after all other liabilities are paid off. Capital A/c is entitled for Interest on capital,partner's salary,share of profit. Also interest on drawings is deducted from the account. No requirement to pay off the amount unless partner retires or leaves the business.
Whereas Partner's loan A/c refers to the amount provided by partner to the firm in terms of Loan. It is a liability of the firm & Firm provides interest on such loan amount to the partner. It is required to be paid off within agreed time period.

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CBSE > Class 12 > Accountancy

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Posted by Mahi . 1 year, 4 months ago

CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

0 answers

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CBSE > Class 12 > Accountancy

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