Treatment of proprietor's drawing
This query is : Resolved
12 July 2013
What is the treatment of Proprietors drawing from bank a/c for personal use. i know the basic entry like- Drawing a/c--dr
to capital a/c.
But is this entry applicable for the proprietor's drawing like- payment of school fees, lic prem, mobile bill (spouse),Atm withdrawn, purchase personal assets through Debit card.etc.
Because if we will debit the capital in all this transaction then the capital will be decrease at regular interval and at final it will reach into nil.
So please suggest me how to deal with this kind of transaction for Proprietorship Company.
to capital a/c.
But is this entry applicable for the proprietor's drawing like- payment of school fees, lic prem, mobile bill (spouse),Atm withdrawn, purchase personal assets through Debit card.etc.
Because if we will debit the capital in all this transaction then the capital will be decrease at regular interval and at final it will reach into nil.
So please suggest me how to deal with this kind of transaction for Proprietorship Company.
12 July 2013
generally the capital balance increases with profit earned..if there is no profit but withdrawls, definitely the capital will go on reducing..
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
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
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
