What is the difference between Partner Capital Account and Partner Current Account?
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1 Answer
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Current account shows current year current year transactions and capital account shows both current transactions relating to businessman and initial capital of businessman.
According to FEMA Act 2000 , " There is no restrictions on holding or exchanging of foreign currency under Current Account . But Any foreign currency is under capital account , then it must be controlled under the regulations of RBI ."
In partnership , partners can make current account separately from capital account in which they can show only their salary , interest on capital and interest on drawing etc. and in capital account , they can show only their capital inv...more
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