Doubt in entry

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.