What will be the journal entries for business purchases paid from designated partner's bank account in a LLP? What will be the journal entry when he will reimburse the amount from LLP's bank account?
John Miller (Business Strategist) 04 November 2020
What will be the journal entries for business purchases paid from designated partner's bank account in a LLP? What will be the journal entry when he will reimburse the amount from LLP's bank account?
LegalWizin (Online Legal Service) 05 November 2020
After LLP registration, one of the crucial requirement for running the business smoothly is accounting process. For the transaction asked for the entries can be recorded as follows:
Purchase Account or Asset Account shall be debited excluding the amount of Tax. CGST/SGST/IGST Account shall be debited. An Account called “(Name of Designated Partner) Loan shall be credited.
2. Entry on reimbursement
The account of “(Name of Designated Partner) Loan” shall be debited with the amount reimbursed and Bank account shall be credited with the same amount.
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