transfer money

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2011 i have two accounts..
one savings salary account and
one current business account.

i have low funds in my current business account.i need to pay of an insurance policy from the current (business account).
my questions are as follows:-
1)is it okay if i just transfer the amount required from the savings(salary account)
to the current (business) account.
2)will that be considered as a loss to my business account.
3)how do i transfer the money to the other account.

both the accounts are my own.and yes both are shown in my returns.
looking forward to a favourable reply.
Thanking you for your time and quick response.

U S Sharma

U S Sharma (Expert)
Follow

31 May 2011 you can pay insurance premium from your current account,

the amount so paid would be accounted in your drawings accounts of business.

Message likes : 1 times

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
Follow

31 May 2011 1. you can transfer any amount of money from your salary savings a/c to business a/c. It will be regarded as introduction of capital in business.

2. If the insurance payment is for personal purpose, the expense will be regarded as drawings. If the payment of insurance is for business purpose, it will be a business expense.

3. I do not understand the meaning of 3rd question. Normally funds are transferred between a/cs by issuing cheques or by making an online transfer. There is no restrictions on ways the amount can be transferred. Funds can even be transferred by withdrawing cash from one a/c and depositing the same in another a/c.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2011 Thanyou very much for your time and effort.
i highly appreciate it.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now