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Allowability of expenses

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Querist : Anonymous

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Querist : Anonymous (Querist)
13 May 2016 Dear All,
Proprietor has spends expenses like restaurants, CCD etc(for self and some times for clients) from debit card and volume of transaction also is big approx 20-25 transaction per month. Can it be allowable expenses and can it be charge to profit and loss account and if yes then under which GL head it should be treat or it should charged to Capital Account.
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KAVIRAJA ADDANGADI

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KAVIRAJA ADDANGADI (Expert)
13 May 2016 Expenses Related To Personal should be treated has Drawing, Expenses Spent With Client can be treated as Business Promotion Expenses if it is spent to staff than staff welfare Expenses. Expenses of Personal nature is in admissible expenses should be treated as Drawings.
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Rupesh Jain

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Rupesh Jain (Expert)
13 May 2016 you have to bifrucate the exp. in personal and for business. for business its is business promotion exp. and personal will be drawing.
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Rupesh Jain

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Rupesh Jain (Expert)
13 May 2016 you have to bifrucate the exp. in personal and for business. for business its is business promotion exp. and personal will be drawing.
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Querist : Anonymous

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Querist : Anonymous (Querist)
13 May 2016 All major expenses he spend on himself for fooding and refreshment. Can it be treated as for business expenses??
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Bhaskaran Chackrapani Warrier

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Bhaskaran Chackrapani Warrier (Expert)
14 May 2016 It seems difficult to establish as 'business expenditure',better book in capital account.
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Neeraj Sharma

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Neeraj Sharma (Expert)
14 May 2016 agree with Kaviraja... proper answered
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