Pankaj Arora (Learner) (3134 Points)
23 March 2011Dear All
Can we maintain director’s current account (not bank A/c) in Pvt. Ltd. Company books and pay salary to staff from this account? Please confirm.
Maheshkumar Sharma
(CA)
(134 Points)
Replied 23 March 2011
this will be a case of Loan from Director. No problem at all, we can proceed.
Siyaram Kumar
(CA FINAL/ Jr. Superintendent(Accounts) IIT BHU VARANASI)
(97 Points)
Replied 23 March 2011
The directors current account (DCA) (also known as simply directors account) is a notional balance between a company and its directors. It is not a real bank account, and is not represented by real monies. It records:
- Monies drawn by the director, on account of salary, dividends, expenses, etc (if not attributed to salary/dividend at the time of drawing)
- Other drawings by the director – eg personal bills paid by the company.
- Net amounts of salary and dividend due.
- Expense re-imbursements due
Normally a directors account must be kept in credit – that’s to say that amounts brought forward, plus net salary and dividend, plus expense re-imbursements must be more than the amounts drawn. This balance can normally be achieved by adjusting the year end dividend level. When the directors account is in credit, it is a credit balance on the accounts, and shows as a creditor – that’s to say an amount owed by the company to the director.
u can`t pay salaries of other staff except directors.
Sharad Suman Das
(art)
(141 Points)
Replied 23 March 2011
Agreed with SIYA
SALARY AND OTHER STAFF EXPENSEXS CANNOT BE PAID OFF FROM DIRECTORS CURRENT A/C
saranraj
(CA FINAL)
(419 Points)
Replied 23 March 2011
| Originally posted by : Maheshkumar Sharma | ||
 |
this will be a case of Loan from Director. No problem at all, we can proceed. |
 |
DINESHPATEL
(ca final student)
(25 Points)
Replied 25 March 2011
i have two pan card. one of them surrender by me. but both pan card is activate even. my tds had been dedected on old pan card. but i want to filing my return in new pan no. can i get tds claim with new pan card please suggested me what shall i do
Jayashree S Iyer
(Company Secretary)
(3224 Points)
Replied 26 March 2011
Company is an artificial person capable of owning assets and liabilities in its own name. Its assets and liabilities are different from that of its members or directors or promotors. All the expenses of the company are to be met by the company from its funds either owned or borrowed. No expenses of the company can be met from Directors Current Account. The director can lend money to the company and the company in turn should make the payments due.
CA Saiyum khan
(Practicing CA)
(690 Points)
Replied 26 March 2011
| Originally posted by : Pankaj Arora | ||
|
|
Dear All Can we maintain director’s current account (not bank A/c) in Pvt. Ltd. Company books and pay salary to staff from this account? Please confirm. |
|
What do you mean by paying salary from the current account of director?
Directors current account can be maintained in a company as explained by Mr. Siya in detail. But I could understand your question exactly.
Sweety Rai
(Nil)
(61 Points)
Replied 26 March 2011
compnay can't do this beacuse its same as loan from director,
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 26 March 2011
The Current Account should be opened in the Name of company and all the expenses of the Company should be done from that very Account.
CAclubindia
