Accounts of a proprietor company

Please group it under deposits

Thank you for supporting me throughout. Only one type of transaction is balance now.

- I transferred some amount time to time from my current account to my SB account because current account offers no interest. Then again, whenever required I transferred it back to current account.

Will this be a Dr to my capital account or is there some other procedure ? Please explain.

Thanks in advance.

1) Transfer from Current A/c (bank) to SB A/c: Drawings Dr To Current A/c (bank)

2) Transfer from SB A/c to Current A/c: Current A/c (bank) Dr To Capital A/c

Alternatively, you can create a new account (under current liabilities/assets depending upon whether the closing balance is credit/debit). Then entries will be:

1) Transfer from current a/c (bank) to SB A/c: Raminder current a/c Dr To Current A/c (bank)

2) Transfer from SB to current a/c: Current A/c (bank) Dr To Raminder current a/c

How to enter Service Tax ?

e.g. I received 1000 as service tax from Mr. X. How to make entry of this and what will be the accounts & account groups involved ?

Do you mean to say that you have billed for service and received money from the customer?

Yes !! Mr. X registered for a course in my institute and paid 1000 as service tax in addition to the fees.

When you raise the bill, you would have accounted the same as follows:

Mr. X (under sundry debtors) Dr.

To Fees received (under income)

To Service tax (under duties & taxes)

Upon receipt of money, entry would be

Cash/Bank Dr

To Mr. X

Originally posted by : Poornima Madhava
	When you raise the bill, you would have accounted the same as follows: Mr. X (under sundry debtors) Dr. To Fees received (under income) To Service tax (under duties & taxes)

No. I do it like....

Mr. X (Sundry debtors) Dr.

To Registration (Under Sales)

AND, Upon receipt of money, I enter

Cash/Bank Dr

To Mr. X

I HAVE NOT CREATED ANY ACCOUNT UNDER INCOME. WHERE AM I WRONG ?
 

Creating income account under sales is also fine.

So, Are u suggesting 2 different entries for registration & ST.

1. Mr. X Dr. 10000

To Registration Cr 10000

2. Mr. X Dr. 1400

To Service Tax Cr. 1400

And 2 entries again at the time of receiving the amount, one for cash/Bank Dr. and one for ST Dr.

??? 

Entries should be:

[assuming receipt of Rs.11,400 (including ST)]:

1) Mr. X Dr. 11400

To Registration 10000

To Service Tax 1400

2) Cash/Bank Dr 11400

To Mr. X 11400

and for the service tax paid by me ?

e.g. Rent of property 100000 + 14% ST + 7.5% Property Tax

What will be the entries ?

(assuming that you take input credit of services i.e. adjust output service tax against input service tax), journal entry would be:

Rent Dr. 100000

Service Tax Dr 14000

Rent (or Property Tax paid) Dr 7.5% value.

To Property Owner

Originally posted by : Poornima Madhava
	A): If you DO NOT maintain the SB account transactions in tally: 1) Telephone expenses Dr. To Raminder Singh - Capital (or Current A/c) Note: use capital account (under capital a/c group) when you want to treat is as capital to the business OR current account (under current liability) when you want to treat is as current a/c transaction) B): If you DO maintain SB account transactions in tally: 1) Telephone exps: Dr. To SB A/c (under bank accounts)

Someone said to me that I need to route these entries through an Imprest account and not capital account. What does it mean ? and how to do it ?

Imprest means petty cash. But if you do not have cash balance in the firm's account, then how can you show it as cash expense!. If you do not want to route these through capital account, then maintain current account, as explained earlier.