Accounting Entry

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Friends, I am a Director of a PVT LTD start-up and I have paid for a software licence (approx Rs 5000) using my personal credit card. The product was purchased in the UK and delivered to me via a friend in the UK. It is however, entirely for business purposes. can I now write a cheque from my Company Account to my Personal Account to cover the cost of the software? If so, what Accounting entries do I need to add in my books to explain this transaction to taxman.

Your help would be much appreciated.

Replies (1)

pass the following entry :

Computer software A/c       Dr.  5,000

 To Director's(name)  A/c                        5,000

when payment made to director :

Director's A/c                           Dr.  5,000

 To Bank A/c                                               5,000


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