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PPF investment made by proprietor to his minor child

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VijNat

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24 Points Posted on 23 July 2023

Dear Experts,

when a proprietor invests in PPF for his minor child, should this be treated as expense or as an investment, in books of accounts of the proprietor?

I understand, PPF investment made by the prop in his own name is to be shown as investment and interest on this inv under capital account.

Thanks.

Replies (4)

Quick Summary

This discussion explores how a proprietor should record Public Provident Fund (PPF) investments made on behalf of their minor child in their business's books. The consensus suggests it should be treated as a capital withdrawal or a gift from the proprietor's capital account, rather than a business expense. Specific accounting entries are also suggested for clarity.