Bank accounts

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Ajay Mishra (Querist)

10 May 2012 SIR.
i am doctor running my small clinic.i am the sole proprietor of the clinic.i am maintaining clinic accounts personally in tally 5.4 .my queries are ;

1 i have mentioned three bank ac in current assets ,one is current ac (individual) and two others are savings ac(joint-2nd joint holder is my wife).can i make clinic transactions through these saving ac too as a proprietor?
2 if not,how can i exit saving accounts from tally and deposit self withdrawal capital in these ac for personal use ?

CA Sachin D Jain

CA Sachin D Jain (Expert)

10 May 2012 Dear Ajay,

Point-wise reply to your queries are as follows:
1. As a proprietor, you can do clinic transactions through your saving account also.
2. Generally, you should prepare two balance sheets, one for business and the other one for self. Business balance sheet will contain all assets and liabilities related to business only and the rest of the things will go to your personal balance sheet. Hence, it is suggested to do all your business transactions through your current account.

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Ajay Mishra

Ajay Mishra (Querist)

11 May 2012 Thanks for satisfactory reply
Please clarify ;
If i will prepare two balance sheets, i have to submit two IT returns ?

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