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Savings account to current account

17 July 2023

Dear experts,

tansferring money from savings a/c to current a/c (both are same owner) it is investment or capital, pls explain,

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11 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178293 Points)
Replied 17 July 2023

As such it is capital introduction in the business by proprietor.

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gaddala ramesh (163 Points)
Replied 17 July 2023

In owner personal books it is investment right ?

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178293 Points)
Replied 17 July 2023

For owner being a proprietor, it is in business account as current account credited. In capital account it gets debited to savings account.

In layman language, it is investment in his own business.

1 Like

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 17 July 2023

Yes, I agreed with Mr Dhirajalal Rambhia Sir...

Also in current scenario All bank accounts will accountability in BS if business is proprietary.

2 Like

gaddala ramesh (163 Points)
Replied 17 July 2023

It is partnership firm

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 18 July 2023

@ Mr Ramesh,
Is The Current Account means Bank's Current account or Partner's Current account (under capital head)...

gaddala ramesh (163 Points)
Replied 18 July 2023

Hotel current a/c he is partner in that

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 18 July 2023

Can't understand this...

Current account means Firm's bank account. Right..?

If it's from partner and out of Capital investment then its not a investment. It's just a partner's Current Account (under capital head).

Otherwise better to check out the deed's T&C...

sabyasachi mukherjee (27579 Points)
Replied 18 July 2023

Fresh introduction of capital no profit.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 18 July 2023

Weldone.....

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Financial Advisor (Advisor) (22 Points)
Replied 20 July 2023

When money is transferred from a Saving account to a Current account owned by the same individual or business, it is simply a movement of funds within the same ownership. It does not involve any investment activity or capitalization because the funds remain under the same ownership and do not lead to any increase or decrease in the overall capital or net worth of the account owner.

It's important to note that if the transferred funds were used for investment purposes, such as purchasing stocks or other assets, then it would be considered an investment or capital allocation.