Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Credit card use by proprietor

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2013 Dear Experts,

I am working in a proprietorship concern.My proprietor is purchasing and paying business bills like telephone and electricity bills through his two credit cards.Can, I update these transactions as follows:
1) at the time of doing transactions:

Electricity exp....Dr.
to Credit card A/C (Current liab in B/S)

2) at the time of paying credit card payment:

Credit Card A/C...Dr
to bank a/c

Please suggest ......

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

06 April 2013 Yes, you do like that. In case of any personal expenditure incurred by the proprietor (i.e expenditure which is net related to business and/or doesn't allowed as business expenditure) through his credit card then give debit to the Capital account as drawings at the time of such expenses incurred.

OM SAI SRI SAI JAI JAI SAI

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2013 Thank u sir.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now