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Proprietorship company

N.Satchidanandam (Accounts & Finance Manager) (54 Points)

18 June 2017

can we book salary to proprietor

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (127786 Points)
Replied 18 June 2017

No...
Proprietor cannot book/account for salary in his proprietary firms. Bcoz, He is only one of the whole owner of his firm. He is the responsibility for the business. He can draw amount from drawings head or Proprietor Current Account head...

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N.Satchidanandam (Accounts & Finance Manager) (54 Points)
Replied 18 June 2017

Thanks,

Then, suppose the proprietor go for a personal loan or business loan or Home Loan, they are aksing salalry statement / bank statement.

Please give me a right solution for the above situation loans.

N.Satchidanandam

RAJA P M ("Do the Right Thing...!!!") (127786 Points)
Replied 18 June 2017

This is very simple. Salary Slip is available only to Salaried person. But, Business man (Proprietor) under business/profession head only. If he/she going to any loan to give his Income Tax return statements with the back papers. It's enough to apply a loan for a business man