Avinash (lecturer) 14 July 2019
I want to prepare Capital A/c of sole proprietor. Kindly tell all possible content of Debit side and Credit Side of Capital A/c of Sole Proprietor. Can i add interest credited on saving or current bank account to credit side of Capital A/c? Also please tell if i Debit following items to Debit side of Capital A/c: Premium on Insurance, Tution Fee, Mutual Fund, PPF etc.? Thanks in advance.
Murugan Shanmugam 14 July 2019
interest on drawing
interest on capital
if amount received from ppf,mutual fund and the same as invested in the business it has to be credited to capital account.
rest of the above has to be debited to capital account
Avinash (lecturer) 16 July 2019
Thank sir for your reply. Please tell what to do if i make expenditure on my own insurance policies, own mutual funds, own ppf, medical expenditure on myself? Can i debit this to Capital A/c? Also please tell, Can i credit Interest received on Saving and Current Bank Account to the Capital A/c? All above queries are related with Sole Proprietorship Business.