Payment done from capital a/c

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urmila (Querist)
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25 May 2013
If the company did any exp for the company & paid from his capital then how we will show this entry & how can we nil this a/c

Please Help Me With This problem!!!!!!

CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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25 May 2013 If you are intending to Nil the Share Capital A/c of the company, then that is not possible.

Charge your expenses to P/L and if the same is negative then your net-worth will reduce to Zero. Share Capital cannot be reduced from expenses.

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urmila

urmila (Querist)
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15 June 2013 but

how can we show this entry???

CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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16 June 2013 Dr. P & L A/c
Cr. Expense A/c

urmila

urmila (Querist)
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18 June 2013

but sir, why will we show this exp in credit side...

CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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18 June 2013 It is transfer entry. Initially when you might have incurred any expenditure you must have debited it, now i am simply giving a transfer entry assuming you have made expenditure entry.

urmila

urmila (Querist)
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19 June 2013 ok sir in that case, profit is less but also exp is credit.after that there is no change in profit.

i have entered this entry but i found same answer.

urmila

urmila (Querist)
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22 June 2013 can anyone give answer to me..

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