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Multiple capital accounts in sole proprietaryship

SHAHHUL IQBAL (article assisstant) (56 Points)

22 April 2021

I has been found capital& current account in the name of another party in accounts of a sole proprietaryship firm.

is it possible???

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5 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 23 April 2021

Please elaborate in details

SHAHHUL IQBAL (article assisstant) (56 Points)
Replied 23 April 2021

While i was checking their financial statement i found a capital & current account in the name of 2 persons.

But the firm was registered as sole proprietaryship

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 23 April 2021

No it is not possible it happen only in case of partnership firm financial.

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 23 April 2021

On the whole, this is wrong as a sole proprietor taxation starts at 3,00,000 and partnership taxation starts at 2,50,000. If they fall under turnover of 5-10 lakhs slab, nothing to worry about. But no one knows the real rules if anyone can have two bank accounts with different names.