Thread Started by #veereshfinance

Dear Sir,
We are running a Partnership firm. One day there was urgent cash requirement to clear the cheque. Hence we borrowed the cash from 3rd party 1.5 Lacks and deposited the cash into company account. The depositor name is 3rd party name only. And after short term 15 Days we paid back the amount with interest through cash with drawing in the 3rd party name only. Now I am confused weather this transaction is valid? and how to account this transaction?
Please suggest us.
17th June 2012 From India, Bangalore
Cash A/c Dr 1,50,000 Third party A/c Cr 1,50,000 Interest payable A/c Dr 3000 Trid pary A/c Cr 3000 (If 2 % is interest) Third party A/c Dr 153000 Cash A/c Cr 153000
18th June 2012 From India , Ahmadabad
Dear Gogula Sreekanth,
Thanks for the accounting guidelines. Some accountant telling us cash should not be directly deposited to the company account. Either it should come from the partner or through Instrument. Does this cause any legal obligations?
If you give us some guidance in this regard we are grateful to you.
Best Regards,
Veeresh H M
19th June 2012 From India, Bangalore
There's no issue if you deposit cash in the current account of the Firm. But I.T. Dept would raise a query that from where did you arrange the huge amount in cash. You should have the relevant documents as a proof that from where the cash was arranged
20th September 2015 From India, Surat
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