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.

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