Company

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Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2016 A proprietorship firm purchased land from a public limited company in which the father of proprietor is director and issued cheque in the name of company. The firm has to show capital in its books of accounts by taking money from that company. What is the procedure to invest the amount in proprietorship firm? What entries will be passed so that the amount is shown as capital invested by proprietor?

Pratik Shah

Pratik Shah (Expert)
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08 December 2016 What do you mean by "the firm has to show capital in its books of account...."? Your query is bit confusing. Can you please elaborate?

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2016 Sir actually the firm is taking loan from bank. It has to show capital in its books of accounts of approx 2 crores. So my question is how the amount will be invested in the firm?