Accounting teatment

Originally posted by : Tarun Jain
	a proprietorship, so customer cash deposit in proprietor's saving account.. >>so proprietor's SB a/c deposit amount is income treated,transfer from SB a/c to firm's as a caiptal raised or >>as a normal business treartment : from SB a/c cash withdrawn, than cash received from customer in firm book. plaese ........... thank u

Pass the following entries:

1) When cash received from debtor in personal savings account of the proprietor and when a separate personal balance sheet is being prepared.

Bank Account...................Dr

To Investment in Business

2) To show the corresponding effect in the ledger of the debtor in the business book

Capital Account...............Dr

To Debtor Account

Sometimes separate personal balance sheet is not being prepared and all the account are shown in the business balance sheet (for proprietory firm). Then no need to pass the above entries and pass the normal received entry from debtors.
 

Deepak JI

Pl tell in which group  you have put " Investment in Business"

Originally posted by : Brajesh gautam
	Deepak JI Pl tell in which group  you have put " Investment in Business"

'Investment  in Business' show in Assets - Current Assets- capittal deposit in Business (loan & advance) under in personal Balance sheet

Thanks Sir,

Saving a/c transtion over 10 lacs?

so income tax act sec.?