Payment of flat (accounting entry)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 January 2018 Dear Experts,
In proprietary concern firm. Proprietor has made the payment of 1760000 lakh for flat from firm current account. However proprietor credit capital is 546000 if I do debit 1760000 lakh in capital account than capital account become in minus.

Pls tell me where to show this flat amount in books,

Thanks
Anuraag

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 January 2018 Debit the capital account as drawings. When you credit profit at the year end capital account will show credit.

Querist : Anonymous

Querist : Anonymous (Querist)

18 January 2018 Sir,
If I do so even after trf of profit capital account will not be credit because firm will not have profit equivalent to debit capital,

Pls suggest

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 January 2018 Let it be negative capital carried over to next year's for adjustment.