Proprietor personal expenses entry
This query is : Resolved
14 March 2018
Can u tell me all (Proprietor)personal expenditure cheque issued is under expenses or capital account. 1) When i take his personal expenditure under capital account,Profit is more. And 2) When i take his personal expenditure under indirect expenses difference in p&L Account. So, which one is the correct.My exact question is all proprietor personal expenses goes under capital account or indirect expenses. Opening capital account is Zero & Newly opened proprietorship Firm.Which posting is correct for balance sheet.
1) By Prop. Capital Acc Dr. Rs.xxxxxxx To Bank Acc Cr. Rs.xxxxxxx (or)
2) 1) By Prop.Indirect Expenses Acc. Dr. Rs.xxxxxxx To Bank Acc Cr. Rs.xxxxxxx
1) By Prop. Capital Acc Dr. Rs.xxxxxxx To Bank Acc Cr. Rs.xxxxxxx (or)
2) 1) By Prop.Indirect Expenses Acc. Dr. Rs.xxxxxxx To Bank Acc Cr. Rs.xxxxxxx
13 May 2018
Personal expenses of the proprietor are in the nature of drawings. They are not expenses of the business and are NOT allowed as expense under the Income Tax Act.
Open a Drawings account under capital account.
Entry:
Drawings A/c Dr
To Cash/ Bank
Open a Drawings account under capital account.
Entry:
Drawings A/c Dr
To Cash/ Bank
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
