Savings account to current account

Dear experts,

tansferring money from savings a/c to current a/c (both are same owner) it is investment or capital, pls explain,
Replies (11)
Quick Summary
This discussion explores whether transferring money from a savings account to a current account, both held by the same owner, constitutes an investment or capital introduction. The consensus is that it's a movement of funds within the same ownership, not a new investment. If the funds were used for external investments, that would be different, but a simple transfer between personal accounts is considered a capital introduction for a sole proprietor or a movement within partner's current accounts for a partnership.

As such it is capital introduction in the business by proprietor.

In owner personal books it is investment right ?

For owner being a proprietor, it is in business account as current account credited. In capital account it gets debited to savings account.

In layman language, it is investment in his own business.

Yes, I agreed with Mr Dhirajalal Rambhia Sir...


Also in current scenario All bank accounts will accountability in BS if business is proprietary.
It is partnership firm
@ Mr Ramesh,
Is The Current Account means Bank's Current account or Partner's Current account (under capital head)...
Hotel current a/c he is partner in that
Can't understand this...

Current account means Firm's bank account. Right..?

If it's from partner and out of Capital investment then its not a investment. It's just a partner's Current Account (under capital head).

Otherwise better to check out the deed's T&C...
Fresh introduction of capital no profit.
Weldone.....

When money is transferred from a Saving account to a Current account owned by the same individual or business, it is simply a movement of funds within the same ownership. It does not involve any investment activity or capitalization because the funds remain under the same ownership and do not lead to any increase or decrease in the overall capital or net worth of the account owner.

It's important to note that if the transferred funds were used for investment purposes, such as purchasing stocks or other assets, then it would be considered an investment or capital allocation.

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