banner_ad

Is it better to get a loan amount in current a/c or personal account from a friend in case of proprietorship?

441 views 4 replies
I am taking a loan from a friend of Rs.10 lakh for my business at a particular ROI. I want to ask whether he should transfer the amount into my current account of personal account. I am a proprietor of the firm for which I am taking loan. Regards
Replies (4)

tHERE IS NO BIG PROBLEM IN THE TYPE OF ACCOUNT

IF YOU ARE TAKING IT INTO CURRENT ACCOUNT OF THE FIRM, THEN DIRECTLY YOU CAN ENTER AS

CURRENT A/C DR

TO LOAN A/C

 

IN CASE, YOU ARE ROUTING THRU SAVING ACCOUNT(WHICH YOU ARE NOT BRINGING IN BOOKS) THEN

BUSINESS BOOKS:-

CURRENT A/C DR

TO CAPITAL A/C

 

PERSONAL BOOKS:-

SAVINGS A/C DR

TO LOAN A/C

For proprietor type of account doesn't matter, you can credit the loan loan in either current account or saving account.

Thanks a lot CA Janani & CA Neha Agrawal.

When deciding between receiving a loan amount in a current account or a personal account for a proprietorship, it's generally better to use the current account. This ensures a clear separation between personal and business finances, which is crucial for accounting and tax purposes. Moreover, banks like Kotak Mahindra Bank offer tailored solutions for business accounts that can provide better interest rates, transaction benefits, and financial management tools. Keeping business transactions within a current account enhances financial transparency and can make it easier to track and manage business expenses and income effectively.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details