Doubt in entry

A/c entries 72 views 1 replies
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166 Points Joined March 2023

Transferred  amount from current a/c to savings a/c, this transaction entered under capital account, correct or not

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On 12 March 2025 at 16:15 Report
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Master in Accounts & high court Advocate
8979 Points Joined December 2011

Transferring an amount from a current account to a savings account is a *non-business transaction*, and it's not related to the capital account. Correct Classification: This transaction should be classified as a *transfer between bank accounts*, which is a *personal transaction*. It doesn't affect the capital account. Capital Account: The capital account typically records transactions related to the company's capital, such as: - Share capital - Reserves - Dividends - Loans Transfers between bank accounts are not related to these items, so they shouldn't be recorded under the capital account.

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On 12 March 2025 at 16:58


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