Expenses incurred from credit card of of proprietorship firm

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This discussion explains how to record expenses from a proprietor's personal credit card within Tally accounting software. If the credit card is used solely for personal expenses, these should be treated as drawings from the proprietor's capital account rather than business expenses. You can book the total monthly payment as a capital withdrawal, crediting the proprietor's capital account.

Daya

Daya (Querist)

28 November 2022 Expenses incurred from Credit card of proprietor how book expenses in tally ,
all personal expenses of proprietor whether should be booked in drawing or other expenses how booked.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

28 November 2022 If the expenses are incurred for personal use, it will be drawings from capital account.

Daya

Daya (Querist)

28 November 2022 sir ,
My another question is that from credit card statement of proprietor should be booked in tally each transaction of proprietor.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

28 November 2022 If the Credit card is used only for personal use, you can directly enter the credit card payment amount (usually, each month) being single entry as capital withdrawal.

CA Punit

CA Punit (Expert)

12 December 2022 Expenses Dr.
To Proprietor's Capital A/c.

You can group the expenses incurred on a particular day, depending upon how your proprietor wants :)

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