Propritorship and personal expense
This query is : Resolved
13 December 2018
Hi,
I am an audiologist by profession and I run my own clinic. I use my car (registered owner is my husband) for daily commuting to my clinic and spend around 2000 for petrol every week. I am just wondering whether I can expense it off in my clinics books of accounts. Also should I show the SB accounts open in my name (not in clinic's name) while preparing the accounts. My clinic is registered as "proprietorship". Thanks in advance for your valuable suggestions.
I am an audiologist by profession and I run my own clinic. I use my car (registered owner is my husband) for daily commuting to my clinic and spend around 2000 for petrol every week. I am just wondering whether I can expense it off in my clinics books of accounts. Also should I show the SB accounts open in my name (not in clinic's name) while preparing the accounts. My clinic is registered as "proprietorship". Thanks in advance for your valuable suggestions.
13 December 2018
for daily commuting to clinic petrol expenses may be claimed as conveyance expenses in books of account.
SB account shall be opened in the name of properietor only and clinic bank account will be current account.
SB account shall be opened in the name of properietor only and clinic bank account will be current account.
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14 December 2018
Yes... You can show as per transaction and accounting activities.
But, Better to open a current account.
Note : You can't provide rental to Car.
14 December 2018
Claim of Expense is related to Profession and hence it can be claimed and will be allowed.
Regarding Books of Accounts, there is accounting principle of seperate entity i.e. business is difference from businessman. Therefore when you prepare the books of clinic, bank account related to clinic should be shown in the books. For accounting it does not matter whether it is current account of saving account. Yes, any transaction not related to business but of personal nature will be routed through proprietor's capital/ current account only.
Regarding Books of Accounts, there is accounting principle of seperate entity i.e. business is difference from businessman. Therefore when you prepare the books of clinic, bank account related to clinic should be shown in the books. For accounting it does not matter whether it is current account of saving account. Yes, any transaction not related to business but of personal nature will be routed through proprietor's capital/ current account only.
25 December 2018
Thanks all for the update
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