Dear Sirs/Madam,
My client runs a proprietorship business. He received an amount of Rs. 13,00,000/- from his relative as unsecured loan in the month of august - 2009 in his peresonal savings bank a/c.
But he book the same in the books of his proprietorship concen.
Now, I just want to know that whether he have done it correct or he should have booked the same unsecured loan in his individual books rather than his proprietorship's business book.
Because as per my knowladge, No unsecured loan can be accepted other than A/c payee cheque, and the chequee he received is in the name of the proprietor not in the name of his firm.
And if the loan received in his individual account can be booked in his proprietorship business books than whats the process. i mean what are the enterirs to be passed in the books,
Please do reply urgently.
With regards,
Nitil Agarwala
CAclubindia
