{"id":1669,"date":"2019-07-02T07:14:28","date_gmt":"2019-07-02T07:14:28","guid":{"rendered":"https:\/\/commerceiets.com\/?p=1669"},"modified":"2019-07-02T07:14:28","modified_gmt":"2019-07-02T07:14:28","slug":"private-debts","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/private-debts\/","title":{"rendered":"PRIVATE DEBTS"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/private-debts\/#MEANING\" title=\"MEANING\">MEANING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/private-debts\/#FIRM_S_DEBTS\" title=\"FIRM\u2019 S DEBTS\">FIRM\u2019 S DEBTS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/private-debts\/#PROVISIONS_APPLICABLE_IN_RESPECT_OF_FIRMS_DEBT_AND_PRIVATE_OR_PERSONAL_DEBT\" title=\"PROVISIONS APPLICABLE IN RESPECT OF FIRM\u2019S DEBT AND PRIVATE OR PERSONAL DEBT &nbsp;\">PROVISIONS APPLICABLE IN RESPECT OF FIRM\u2019S DEBT AND PRIVATE OR PERSONAL DEBT &nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/private-debts\/#DIFFERENCE_BETWEEN_FIRMS_DEBTS_AND_PRIVATE_DEBTS\" title=\"DIFFERENCE BETWEEN FIRM\u2019S DEBTS AND PRIVATE DEBTS\">DIFFERENCE BETWEEN FIRM\u2019S DEBTS AND PRIVATE DEBTS<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"meaning\"><span class=\"ez-toc-section\" id=\"MEANING\"><\/span>MEANING<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">Debts are the loan for the <a aria-label=\"firm (opens in a new tab)\" href=\"https:\/\/commerceiets.com\/partnership-business\/\" target=\"_blank\" rel=\"noreferrer noopener\">firm<\/a> or any individual. It is the claim the third party carries against any firm or individual. Private Debts are the debts which a partner owes in his personal capacity. The respective partner is liable to discharge these debts personally or from his own sources. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"firm-s-debts\"><span class=\"ez-toc-section\" id=\"FIRM_S_DEBTS\"><\/span>FIRM\u2019 S DEBTS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">Debts which the firm owes to outsiders are known as Firm\u2019s\ndebts. In other words, these are the claims which the firm has to pay to the\noutsiders or third party. The payment of these debts is made out of the firm\u2019s\nproperty first.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"provisions-applicable-in-respect-of-firm-s-debt-and-private-or-personal-debt\"><span class=\"ez-toc-section\" id=\"PROVISIONS_APPLICABLE_IN_RESPECT_OF_FIRMS_DEBT_AND_PRIVATE_OR_PERSONAL_DEBT\"><\/span>PROVISIONS APPLICABLE IN RESPECT OF FIRM\u2019S DEBT AND PRIVATE OR PERSONAL DEBT &nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Firm\u2019s property is applied first towards payment of firm\u2019s debts and then the surplus, if any, is applied towards payment of partner\u2019s debts to the extent of concerned partner is entitled to share in the surplus.<\/li><li>Private property of each partner is applied first towards the payment of his personal<font color=\"#b00000\"> debts<\/font> and surplus, if any, is applied towards payment of firm\u2019s debts.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"difference-between-firm-s-debts-and-private-debts\"><span class=\"ez-toc-section\" id=\"DIFFERENCE_BETWEEN_FIRMS_DEBTS_AND_PRIVATE_DEBTS\"><\/span>DIFFERENCE BETWEEN FIRM\u2019S DEBTS AND PRIVATE DEBTS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>   BASIS OF DIFFERENCE   <\/strong><\/td><td><strong>   FIRM\u2019S DEBTS   <\/strong><\/td><td><strong>   PRIVATE DEBTS   <\/strong><\/td><\/tr><tr><td><strong>   MEANING   <\/strong><\/td><td>\n  Firm\u2019s Debts means the debt owed by the firm to outsiders of third\n  parties of the firm.\n  <\/td><td>   It means debt owed by a partner in his personal capacity to   any other person.   <\/td><\/tr><tr><td><strong>   LIABILITY   <\/strong><\/td><td>\n  All the partners are liable jointly and severally for the firm\u2019s\n  debts.\n  <\/td><td>   Concerned partners are liable personally for his personal debt.   <\/td><\/tr><tr><td><strong>   APPLICATION OF FIRM\u2019S PROPERTY   <\/strong><\/td><td>   Firm\u2019s property is applied first for settling firm\u2019s debt.   <\/td><td>   Share of the concerned partner in excess of the firm\u2019s property over   firm\u2019s debts can be applied to repay the personal debt.   <\/td><\/tr><tr><td><strong>   APPLICATION OF PRIVATE PROPERTY   <\/strong><\/td><td>   Excess of partner\u2019s private property over his personal debt can be   applied to repay the firm\u2019s debts.   <\/td><td>   Private property is applied first for these debts then towards   firm\u2019s liability.   <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MEANING Debts are the loan for the firm or any individual. It is the claim the third party carries against any firm or individual. Private Debts are the debts which a partner owes in his personal capacity. The respective partner is liable to discharge these debts personally or from his own sources. FIRM\u2019 S DEBTS&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/private-debts\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;PRIVATE DEBTS&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":1671,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[19,21],"tags":[58,59,60],"class_list":["post-1669","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-12-accountancy","category-partnership-accounts","tag-difference-between-firms-debts-and-private-debts","tag-firm-s-debts","tag-provisions-applicable-in-respect-of-firms-debts-and-private-debts"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/1669"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=1669"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/1669\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/1671"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=1669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=1669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=1669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}