Managing income between proprietorship firm and owner's accounts

Hi, I am having confusion as below :

One of my client uses savings account to reserve excess funds from current account (it gets u SB AC interest, sometimes FD int too) but while preparing his Firm's final Accounts he doesn't want these to be reflected in it, instead being shown in his own PL & BS. So want help how to reflect following (wrt to any accounting package) :

a) Transfer SB AC interest from firm,s PL to own PL

b) Transfer closing balance of SB Account from firm's BS to own BS

 

PS : This SB AC is only used for business (only to & fro from current ac) and no personal transaction is executed.

Replies (1)
According to me you can change you accounting process,

Shift that Saving account permanently to the books of account of proprietor (own Account).
So, interest received if any directly goes in Proprietor books.
So, there is no need at every year to trasfer that interest and balance from firm to Proprietor books.

You can show saving to current account transaction as introduction and withdraw of capital in firm by Proprietor in firm's books of account. and as investment in firm as propritor' s books of account.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details