Capital Account on the Asset Side
This query is : Resolved
17 October 2007
Can the capital come on the Assets side in case of a Sole Proprietorship Business?
18 October 2007
In the balance sheet of the Sole Proprietorship business, capital contributed to it by the proprietor can not come under the Asset side of the business as per accounting convention, for that is not the asset of that business but capital received from the proprietor.
In the balance sheet of the proprietor, the capital contributed by him to that business can be shown as asset.
S.Srinivasaraghavan
In the balance sheet of the proprietor, the capital contributed by him to that business can be shown as asset.
S.Srinivasaraghavan
18 October 2007
A Negative Capital can be a part of the Asset Side but that means that you are withdrawing Excess from your business and there are no Profits in the business.
But this is Against the Conventions
But this is Against the Conventions
18 October 2007
It will reflect more drawings rather than introduction of capital. It will not be healthy for the entity for good liquidity.
31 October 2007
if capital comes on asset side, it is overdrawings by the proprietor from the business, which is not good to the business.
08 November 2007
Capital Account on Assets Side reflects overdrawnings by Proprietor.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- Gift Received from nonblood relative
- Section 50-fixed asset-->building ceases to exist
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Putting a heading on received mail
- Reprocessing of rectification order AY 2025-26
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Regime change
- TDS 194-T applicability
- Consolidated financials
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
