Query regarding sales of goods to proprietor itself

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Harshu (Querist)
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16 October 2018 R/Sir
Kindly request to resolve my query regarding sale of goods to proprietor itself :-
1.) If from business some goods is sold to proprietor of business then what would be it accounting treatment and as per sale of goods act there would be two parties or not because there is no proprietorship act but we have to consider entity concept of business here or not.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 October 2018 In proprietorship no entity concept, it's not a separate entity.
Debit capital account and credit purchase/stock.
It will not fall under sale.

Puja Sharma

Puja Sharma (Expert)
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16 October 2018 The accounting should be made routed through Capital Account .

Harshu

Harshu (Querist)
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17 October 2018 Sir as you said in proprietorship entity concept not apply then how we will do accounting as per business point of view.
Kindly request to resolve my query as soon as possible.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 October 2018 Adjust personal adjustment in capital account. I am not clear what is your requirements.

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