Plz help

Rajesh Raman ( ) (292 Points)

15 April 2016  

My client Mr.X is running a proprietary concern (M/s A) doing Architecture consultation and M/s Y.pvt ltd also. Both are established in 2014.

 

Treatment of the following transaction

M/s. A proprietary concern had 3 bank account  a. IDBI (Business account)

b.SBI (Personal a/c)

C. Vijaya Bank.

His personal Bank a/c merge with proprietary concern

 

  1. Transaction regarding his Personal Bank a/c SBI – Is the following treatment are correct ???
  • Received from someone else - Bank DrDrawings Cr
  • Paid to someone else – Drawings Dr Bank Cr

Situation 1 Received/ Paid  by cheque

Situation 2 Received / Paid by Cash

  • Amount Received/ Paid to M/s. Y pvt ltd. (Mr.X is the owner of Y pvt ltd)

 

What is the correct treatment in both cases

 

  1. Vehicle Loan repayment via Vijaya Bank (Personal a/c) = Insurance Dr Vijaya bank – is it correct ???
  2. Personal insurance paid through his personal bank a/c (SBI)