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Bike purchase for personal use
we purchase bike for personal use can we paid amount of bike through our current account of propertiter or paid our saving account plz guide me what is the rule of payment of personal use and how to show bike in our firm balance sheet as a asset or as a drawing any one guide me thanks in advance
Replies (4)
Quick Summary
It is for personal use so it's better to show it in capital account. You can also show it in fixed assets but no depreciation is allowed.
Show it through capital account.
Since bike is for personal use, it is better to pay from Savings Bank A/c so that it is not shown in business accounts at all.
Alternately, you may pay from business Current a/c with 2 options: (1) Debit Drawings or (2) Debit Motorcycle a/c in business books but don't claim depreciation (better for control purpose).
Thanks to all
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