How to enter an entry for receipts in the personal account of proprietor.
Do I need to credit the capital account in the books of the firm or I need to show as receipts in personal account in the books of the firm?
All the previous receipts from the sale of service is into the personal account of proprietor( Even last year the receipts were in the personal account and ITR is filed from the details of the personal account only). Current account in the name of the firm is opened recently. As the proprietor is the owner of the company and the entire receipts have to be taxed in the name of the proprietor only. can I show that personal account details as it is in the books as personal account of proprietor??
23 November 2019
Hello, if you are keeping a separate business account and there is a receipt in personal account there can be two reasons and cases- 1. If money taken from business account - That is Drawings or salary, as the case may be 2. If received from a customer in personal account, you may transfer that money to business account or show it as a loan
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