Income on investment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2018 WHAT SHALL BE THE ACCOUNTING ENTRY FOR INCOME RECEIVED ON INVESTMENT BY BUSINESS PROPRIETOR,,,

WHETHER INCOME RECEIVED SHALL BE CREDITED IN CAPITAL ACCOUNT (BEING PROPRIETOR'S PERSONAL INCOME) OR IT SHALL BE CREDITED IN P& L ACCOUNT....

KINDLY NOTE ABOVE QUERY IS IN RELEVANT TO INCOME TAX PURPOSE

THANKS...

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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12 August 2018 You can Transfer Profit after adjusting income tax to capital account

Dr Profit and loss A/c
Cr Income Tax payable (extent of Income Tax)
Cr TDS receivable (if TDS deducted)
Cr Advance Tax ( Advance Tax Paid)
Cr Capital A/c