Why personal expenses and personal withdrawl

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This discussion clarifies the accounting treatment for personal expenses and withdrawals. It explains that expenses purely personal in nature, and unrelated to business activities, should always be routed through the drawings account of an individual or HUF. This ensures a clear distinction between business and personal finances.

Daya

Daya (Querist)
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14 January 2023 why personal expenses and personal withdrawal , routed through drawing account of Individual and HUF.

Dhirajlal Rambhia online

Dhirajlal Rambhia online

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14 January 2023 As they are not related to business activity...

CA LAVESH VASYANI

CA LAVESH VASYANI (Expert)
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15 January 2023 Expenses which are purely in personal nature and not related to business are always routed through drawings account of individual and HUF.

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