Current Account ( Properitor Drawings)

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SAM KOSHY (Querist)
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01 October 2007 Dear Sir,

Can we show the current account in the Balance Sheet under header capital and reserves.

or it is better to show the net amount after deducting from the retained earnings.

my question is :

Is it good to display the properitor drawings in the main first pages of balance sheet.

Which is the better practice?

Please comment.

Sam Koshy

Mallidi Ramabrahmananda Reddy

Mallidi Ramabrahmananda Reddy (Expert)
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02 October 2007 Presentation of financial data in any form is for the use of reader subject to the requirement of legislature and guidance note of ICAI etc. The reuirement of presenting capital of proprietor is to show the opening balance of capital, fresh contribution (additions), drawings, Profit/loss for the period and closing balance. In order to disclose these particulars follow the generally accepted accounting practice. Capital is the first header on Liabilities side of the Balance Sheet.