Cash payment 20,000

drawings is a personal nature account.

yes... because it is just a drawings and the firm is not going to claim it in Profit and loss A/c..... only if the amount is claimed as expense then it cant be....

Also for transporters the limit is Rs. 35000

When is expense can not be claimed as expense (in case of drawing), it can not be disallowed

when an expense can not be claimed as deduction (as in case of drawing) , then in that case no disallowance provisions are applicable to such expenses.

yeah allowed, as it is not an expense as accordance with section 32 to 37 of Income tax act 1961..

neither firm will claim it in its profit and loss account

U cant debit Drawings as expense in P&l and not able to get tax advantage on it. It is always disallowed irrespective of mode of payment and amount.

it is not an expenditure so sec 40(A)(3) is not applicable.