Query about proprietorship concern.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2011 Dear Sir,

We are a proprietorship concern,few days ago our Proprietor's Son was admitted to Hospital for having fever & jaundice.The total bill was amounted to Rs.2,30,000.

Now I want to know can we book these expenses in our books or not as the bill is in the name of the son only and he was also not having any mediclaim insurance from company.

Please reply.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
Follow

17 August 2011 You can claim the same in your book but not as an expense.

You can show the same as drawings done by the proprietor.

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2011 but the medical bill is in the name of his son how can we show as a drawing

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
Follow

17 August 2011 No problem in that dear.

You have to prove an expense only when you are claiming it in the P & L A/c. In this case, you are not doing so. Therefor you can show the same in Drawings.

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2011 And also our sir has taken 120000/- from the business as cash and 50000/- is paid through his own credit card and rest is paid by his relative's credit card.

Now how can I adjust the amount paid by his own credit card and his relatives credit card in our books?

Please reply.

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2011 Dear Sir,

His son is working in his company only as an employee then also we can show this in the drawings? His son is independent now please reply urgently what should I do?
And also reply for the above question how can I adjust the credit amount?

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
Follow

21 August 2011 For the credit amount, you can show the same as a loan taken.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
Follow

21 August 2011 I dont understand the problem in showing the same in the drawings of the father.

If the father has paid the amount then obviously it is the drawings of the father.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now