Cc limit against personal limit in proprietor name

A/c entries 321 views 1 replies

For a small business, turnover < 50 lakhs.

proprietor wants to use OD limit against FD in his name as working capital.

should he create a od limit account in ac books and do the entries?

how the interest paid on use of limit shall be accounted.

Replies (1)
Interest paid is business expenses. interest received is income from other sources.


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