Exp incurred by Proprietor
This query is : Resolved
05 December 2009
Dear Sir
I am working with a Proprietorship firm. If we reimburse the amount of fuel used by proprietor, should we book this exp or to be deducted from the Capital.
Pls help me as the matter is very important.
Regards
Vijay
I am working with a Proprietorship firm. If we reimburse the amount of fuel used by proprietor, should we book this exp or to be deducted from the Capital.
Pls help me as the matter is very important.
Regards
Vijay
05 December 2009
Yes u can Capitalised it if expenditure is in personal nature or for personal purpose.
05 December 2009
From the language of the question; it seems that the expenditure is in connection with the business. If petrol expenses are used for business purpose; then it is entirely revenue in nature and thereby allowable expenditure. Hence not to be debited to capital.
However; if fuel expenses is used for personal purposes; then it will be debited to capital account.
Ca Surendra Rakhecha,Surat
However; if fuel expenses is used for personal purposes; then it will be debited to capital account.
Ca Surendra Rakhecha,Surat
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