20 February 2008
Question not clear. Please specify, what do you means by current account, is it bank account or MD's A/c? If it is MD's, it has to be treated advance. Please explain the question in detail, so that we can answer clearly.
If the proprietor /MD of the private limited company is the owner of the firm, he can transfer / withdraw cash from company's current account to his personal account ( i.e transfer of cash to proprietor's current a/c & listed under the header properitor drawings).
25 February 2008
The company opens a suspense account through which the director withdraw cash and deposit cash. Debit and credit is given to suspense account respectively. Whether such a situation allowed.
Either you can open a new bank account for this purpose or create a IOU-loans/ Advannces a/c internally. You can give debit and credit entries to this suspense account and can give credit entries to overhead expenses or mgmt expenses / drawings.
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