04 May 2013
Nature of capital account is Personal Account. Golden rule applicable will be Dr the receiver nd Cr the giver. In simple terms any increase in capital shld be shown on credit side of capital a/c i.e. Salary recd, int income, rent income, gift recd. etc. Likewise any decrease in capital shld be shown on debit side e.g. Adv tax paid, lic paid, mediclaim paid, gift given, drawings etc.
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