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what would be journal entry if proprietor paid business expense through his personal account
Journal Entry:
Debit: Business Expense Account
Credit: Proprietor's Personal Account
When a proprietor pays a business expense using their personal account, the journal entry reflects the transaction in the business's accounting records. The "Debit" side of the entry increases the Business Expense Account, recognizing the expense incurred. On the other hand, the "Credit" side decreases the Proprietor's Personal Account, indicating that the proprietor used personal funds to cover the business expense. This entry helps maintain accurate financial records and separate business and personal transactions.
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