What is the need for Interest on Capital in a Sole Proprietorship? I understand that as per Business Entity Concept, Owner is separate from Business, and hence he requires interest on the amount invested by him in the Business. However, really, he is the one carrying on the business. So, in a way he is charging interest on his own money. Please explain!

Sir, one person running a proprietorship business.He maintained one current account in the proprietorship business name and savings account. He received income from business in both the account. At the time of preparing balance sheet of that business whether I include the savings account balance in bank account or not.

Which expenses are to be taken in partnership firm or which not ???

whom to use receipts & payments account ...


whom to use income & expenditure accounts



whom to use profit and loss accounts......please tell me ....

sir interest on IT Refund ....can we take under capital accounts....?

hi sir IT refund amount comes under capital account balance account...? please tell me sir

Why it is so called as profit and loss A/c neither than profit or loss A/c.Either profit or loss can be judged.

In case of Amalgamation in the nature of merger what should be the treatment for Security premium lying in the books of Transferor company. Whether it will be added to the security premium of the Transferee company or will it be adjusted with the reserves of the Transferee company?

A cheque for Rs500 received from Yuvraj & Co. was dishonoured and debited to Discount Account. Due to rectification of this error, net profit will be ?

In case of goods-in-transit, the following entry is passed:
Goods in transit Dr
To Creditors account

Next year, on actual receipt of such goods,
Purchases Dr
To Goods in transit

Such amount of goods-in-transit in includible in inventory as per Sch III of Companies Act 2013.

My query is that inclusion of goods-in-transit in closing inventory inflates inventory resulting in overstatement of profits. Does this not distort the "true and fair view" aspect?