Debit & credit side of capital a/c of sole proprietor
This query is : Open
14 July 2019
I want to prepare Capital A/c of sole proprietor. Kindly tell all possible content of Debit side and Credit Side of Capital A/c of Sole Proprietor. Can i add interest credited on saving or current bank account to credit side of Capital A/c? Also please tell if i Debit following items to Debit side of Capital A/c: Premium on Insurance, Tution Fee, Mutual Fund, PPF etc.? Thanks in advance.
15 July 2019
I hope that you are doing some business. Interest on current / saving bank would be shown as other income in profit & loss account. You need to prepare Profit & Loss account containing the income or expenditure from business. The profit will be added to the capital account and the drawing that you have made will be deducted from the capital account.
Message likes :
3 times
15 July 2019
Thank you madam for your reply. Please tell what to do, if i make payment towards insurance policies of my own, mutual fund of my own, own ppf and personal medical expenditure? Can i record it to the debit side of Capital A/c as it is belongs to owner personal level?
15 July 2019
Yes, you can record so in the debit side. Your personal expenses can also be shown as drawings and you can maintain a list for drawings.
Message likes :
1 times
16 July 2019
Thank you Madam. I am grateful to you. I have done Caiptal A/c of sole Proprietor as follows. Please tell tell me is there any correction?
Capital Account
For the Year Ending 31st March 2019
Dr. Side
Particulars Amount Amount
To Drawings 364477
To Life Insurance Premium 78011
To Mediclaim Premium 11360
To Tution Fee 50000
To Balance C/D 671833
Total 1175681
and Credit Side:
Particulars Amount Amount
By Balance B/D 781126
By Net Profit 392460
By Saving Bank Interest
HDFC Bank - 00641000156733 1865
By I Tax Refund 230
Capital Account
For the Year Ending 31st March 2019
Dr. Side
Particulars Amount Amount
To Drawings 364477
To Life Insurance Premium 78011
To Mediclaim Premium 11360
To Tution Fee 50000
To Balance C/D 671833
Total 1175681
and Credit Side:
Particulars Amount Amount
By Balance B/D 781126
By Net Profit 392460
By Saving Bank Interest
HDFC Bank - 00641000156733 1865
By I Tax Refund 230
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 registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Price inclusive or exclusive of GST while made entry in P& L Account
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Minimum tax payable to file Updated return
- UDIN ISSUE
- GST ISSUE OF INPUT AND OUTPUT GST
- GST Intimation due to Government took possession of Business Premises under PPE Act
- Salary from Qatar in Dollars in India
- Change Of Karta In Case of Death
- Non filing of I T Returns
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- 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
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
