Question

Mr Ganpati the proprietor of a business Sold His residential house for 50 lakh will it be recorded in the books of accounts give reason

Answer 1

Answer:

no

Explanation:

it will not be recorded in the books of accounts because business and properitor are separate entity and selling his personal house is nowhere related to the .business

Answer 2

Answer:

No

Explanation:

No. Personal dealings of the proprietor are not recorded in the books of the firm. However, if the invests this amount in the business it will be treated as additional capital introduced by the proprietor and then it will be recoded in books of the firm.