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Accounting teatment

Tarun Jain (Student) (42 Points)

12 December 2011

a proprietorship,

so customer cash deposit in proprietor's saving account..

>>so proprietor's SB a/c deposit amount is income treated,transfer from SB a/c to firm's as a caiptal raised

>>as a normal business treartment : from SB a/c cash withdrawn, than cash received from customer in firm book.

plaese ...........

thank u

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4 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 12 December 2011

Originally posted by : Tarun Jain
	a proprietorship, so customer cash deposit in proprietor's saving account.. >>so proprietor's SB a/c deposit amount is income treated,transfer from SB a/c to firm's as a caiptal raised or >>as a normal business treartment : from SB a/c cash withdrawn, than cash received from customer in firm book. plaese ........... thank u

Pass the following entries:

1) When cash received from debtor in personal savings account of the proprietor and when a separate personal balance sheet is being prepared.

Bank Account...................Dr

To Investment in Business

2) To show the corresponding effect in the ledger of the debtor in the business book

Capital Account...............Dr

To Debtor Account

Sometimes separate personal balance sheet is not being prepared and all the account are shown in the business balance sheet (for proprietory firm). Then no need to pass the above entries and pass the normal received entry from debtors.