Saving account in books of account

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This query is : Resolved

Quick Summary

This discussion addresses whether personal savings accounts, even those with only non-business transactions like LPG subsidies or interest, must be included in a proprietorship firm's books of accounts. The consensus is that all bank accounts should be shown, but personal expenses can be transferred to the proprietor's capital account, minimising impact on business accounts. It also touches upon calculating short-term capital gains from mutual fund and stock sales.

Nisha Kathuria

Nisha Kathuria (Querist)

22 September 2023 Dear Sir

Its mandatory to show saving account,s transaction in books of accounts in proprietor,s ship firm.
Prop has 3 saving account where no business transaction only LPG Subsidy, saving account interest, bike insurance claim etc
please advise

RAJA P M

RAJA P M (Expert)

22 September 2023 Yes, All Bank accounts will be shown. But, As Your said Expenses will be account and transfer to capital Account... No more effects in the business Account...

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Nisha Kathuria

Nisha Kathuria (Querist)

22 September 2023 Thank you very much Raja Sir,

Please clear one more doubt

1. I have Short term Capital grain from MF and Stock so i have to selected Schlude of Long term & Short term both
2. I have sold mutual fund Rs.25200/- and Stock of Rs.46400/- so i have to add Rs.25200+46400 Rs. 71600 show in colum 111A Full Value of Consideration Rs.71600/-

3. I have purchase mutual fund Rs.26100/- and Stock of Rs.32900/- so i have to add Rs.26100 +32900 and put in Rs.59000/- cost of acquisition without indexation Rs .59000/- and then Capital gain short Term RS 12600/-

RAJA P M

RAJA P M (Expert)

22 September 2023 You are most welcome...

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