Basic accounts

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Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2013 Hi,

I want to know why CAPITAL & DRAWINGS comes under "PERSONAL A/C" in golden rules. Please give clear explanation for this. Because its confusing me a lot.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

24 July 2013 since capital a/c contains all transaction which are personal in nature...eg from personal income person invest in business and when exp are drawn for personal purposes it is debited.

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2013 Sir its confusing can u plz give some other explanation.

Ganeshbabu K

Ganeshbabu K (Expert)

24 July 2013 Accounts which represents persons or organisations is personal accounts..

Capital account represents owner of the business so it is personal account

amount payable to others (persons,organisations) are also personal accounts

Thanks & regards
Ganesh babu k

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