Cc limit against personal limit in proprietor name

Rajeev Kumar Gupta (accountant) (54 Points)

29 June 2019  

For a small business, turnover < 50 lakhs.

proprietor wants to use OD limit against FD in his name as working capital.

should he create a od limit account in ac books and do the entries?

how the interest paid on use of limit shall be accounted.