Allowable expenses

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student
50 Points Posted on 28 September 2020
If any new partnership firm have purchased some equipments and payment made through partner's personal bank account because firm doesn't have own bank account yet. Is it allowable expenses or will disallow.
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On 28 September 2020 at 11:09 Report
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This discussion clarifies whether equipment purchased for a new partnership firm using a partner's personal bank account is considered an allowable expense. The consensus is that it is allowable, provided the invoice is in the firm's name. The firm should then reimburse the partner for the expense once its own bank account is established.

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Tax and Business Consultant
11616 Points Posted on 28 September 2020
It's allowable...make sure that invoice is in name of Firm ect..
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On 28 September 2020 at 11:50
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student
50 Points Posted on 28 September 2020
Yeah invoice is firm's name but payment is made through partner's personal bank account
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On 28 September 2020 at 13:22
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Tax and Business Consultant
11616 Points Posted on 28 September 2020
It's allowable...firm will reimburse that Expenses to Partner by cheque, once bank account of firm opened.
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On 28 September 2020 at 13:27

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