IF A PROPRIETOR
INVEST IN PPF A/C- RS 100000
AND MUTUAL FUND-200000
THEN IN A/C WHERE IT SHOULD BE SHOWN IN BALANCE SHEET IN INVESTMENT OR IN HIS DRAWING
WHAT IS BETTER ?
shailesh agarwal (professional accountant) (7642 Points)
01 March 2013IF A PROPRIETOR
INVEST IN PPF A/C- RS 100000
AND MUTUAL FUND-200000
THEN IN A/C WHERE IT SHOULD BE SHOWN IN BALANCE SHEET IN INVESTMENT OR IN HIS DRAWING
WHAT IS BETTER ?
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 01 March 2013
It can shown in either way i.e. Debit it to drawings or show it as investments and account for interst & dividend in the P&L as & when recd.
It would be prudent to show it as investments rather than debiting to drawings as you get to know what all investments you have and what contributions you have made in these investments just by going through the invetments group as maintained in the accounting software.
shailesh agarwal
(professional accountant)
(7642 Points)
Replied 01 March 2013
THANKS GIRDHAR FOR QUICK REPLY
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