Personal drawings..

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2012 Hi, i'm a B.com student. Kindly sort out this doubt.

Example: M/s X is a trading firm. It's proprietor made cash & chq payments of Rs. 10,00,000 to a person who is construction contractor for his service rendered to proprietor's own house construction and the contractor is unregistered contractor.

Qst1: How Drawings/Chq payments made will be treated as in the books M/s X firm?

Qst2: As per accounting standards under which schedule it will be treated.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 May 2012 The payments shall be treated as drawings.

Entry will be as under:

Drawings A/c Dr
To Bank

Drawings are reduced from the capital account while preparing financial statements.

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2012 Thanks a lot Sir.
Please ans for other Doubts:

1. Suppose in the bank statement contractor name is indicated.

2. When the financial statements is prepared (at the time of necessary / year end / while passing the entry.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 May 2012 Financial statements are prepared at the end of the year. They are prepared for the period beginning on 1st April and ending on 31st March of the next year.

For example 1.4.2011 to 31.03.2012

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Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2012 Thanking you sir...

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 May 2012 You are welcome. You should use the thanks button to convey your thanks.

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