Dear experts,
tansferring money from savings a/c to current a/c (both are same owner) it is investment or capital, pls explain,
As such it is capital introduction in the business by proprietor.
gaddala ramesh (163 Points)
17 July 2023
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160442 Points)
Replied 17 July 2023
As such it is capital introduction in the business by proprietor.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160442 Points)
Replied 17 July 2023
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.
RAJA P M
("Do the Right Thing...!!!")
(127196 Points)
Replied 17 July 2023
RAJA P M
("Do the Right Thing...!!!")
(127196 Points)
Replied 18 July 2023
RAJA P M
("Do the Right Thing...!!!")
(127196 Points)
Replied 18 July 2023
Financial Advisor
(Advisor)
(22 Points)
Replied 20 July 2023
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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