Chit fund entries in accounts
This query is : Resolved
ABDUL VAJEED
(Querist)
06 October 2012
Hi All,
One of my clients got the chit money and invested it in business , He got the money thru the bank which was used for business so i had to show that enrty as
Bank dr 50L
To Chit co Cr 50L,
Now chit co name is under current liabilities ,
Is the entry correct ?
Should i show the Chit co as Liab or Credit the Cap a/c ?
One of my clients got the chit money and invested it in business , He got the money thru the bank which was used for business so i had to show that enrty as
Bank dr 50L
To Chit co Cr 50L,
Now chit co name is under current liabilities ,
Is the entry correct ?
Should i show the Chit co as Liab or Credit the Cap a/c ?
CA. Jatin Gupta
(Expert)
06 October 2012
you have passed correct entry.
ABDUL VAJEED
(Querist)
08 October 2012
Thanxxxxxxxxx,
But some said i should not get the chit co name into picture as its capital in nature .
I am confused Pls help
But some said i should not get the chit co name into picture as its capital in nature .
I am confused Pls help
CA. Jatin Gupta
(Expert)
08 October 2012
capital is when you invest the money, here in your case you have borrowed the money, so you need to show it as your liability.
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