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