03 December 2007
In a private company, Can capital a/c be debited for any withdrawl ? Is there any Drawings a/c in a company ? Please answer for both public limited and private limited company ?
You have no legal sanction for debiting capital account of a Public or Private company at all. The exceptional conditions are quite different which are rare in practice.
There can be director's loan account in private companies. But please be careful about deemed dividend concept Under section 2 (22) (e) of income tax act 1961.
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