propriter renumaration how to treat in final accounts
Answers
PROPRITER RENUMARATION:- it comes under PROFIT & LOSS A/C DR Side
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Answer:
Proprietor is not like a partner. There is no registration of proprietory firm like partnership firm. No different PAN card is applied like partnership firm. Proprietory business is carried on on the basis of PAN card of individual. So tax slab of individual is applicable for proprietorship firm. So this transaction of proprietor giving loan to his business is like individual is starting business from his money. So it should not be treated as a loan. It is a capital of your business. And salary taken from proprietary business is a part of your profit. Whole profit of business from proprietorship is your own. There is nothing like you take salary from ur business. You are not doing job there.