Drawings in partnership firm

Rahul Gupta (Querist) 08 February 2015 This query is : Resolved
Can a partner's drawings be more than money in his capital account such that his capital a/c shows negative balance at the end of the year(31st March)

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prabhakar singh (Expert) 08 February 2015
Why people come here to make fun of things?

All is subject to agreement.

Write down the facts and problem associated.

Can't a business eat it's networth????

Guest (Expert) 08 February 2015
Better you Discuss it with CA Club of this same Forum

ajay sethi (Expert) 08 February 2015
what are the terms and clauses ofyour partnership deed?

Rajendra K Goyal (Expert) 08 February 2015
Academic query.

Guest (Expert) 08 February 2015
Academic query. You are owner of what? If owner of a firm, before putting up your question, you must have the knowledge about the term "capital" and "capital account".

So, better discuss the real problem, if there is any.

Rahul Gupta (Querist) 08 February 2015
A existing partner in my family partnership firm has bought property from drawings beyond his capital In his name .I would like to know what can I do about that.

Guest (Expert) 09 February 2015
I wonder, if it is not your hypothetical query. If not, how would you like to justify by clarifying the following points:

1) How could he draw the amount without your consent or knowledge, being another partner of the firm?

2) How the huge amount to buy a property was withdrawn without the signature of both the partners (you and your partner) from the joint account of the firm?

3) Under what ledger head of account he has shown the withdrawn amount?

Rahul Gupta (Querist) 09 February 2015
He did so under Drawings which at the end of the yr has got deucted from his capital a/c making it -ve .Ours is a family partnership and he is my uncle and used to handle account at the firm. Can I as a partner stake claim in that property?

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