Electricity bill paid from current account

Dear Sir
due to lackdown patner paid 5 (our and relatives) electricity bill from currant account Please suggest how to pass the entry in books of account and also suggest can we face any problems
Replies (2)
Quick Summary
A business owner is seeking advice on how to account for multiple electricity bills paid from their company's current account, including those for relatives. They are concerned about the correct journal entry and potential tax implications, specifically if these expenses will be disallowed as deductions when calculating profit. The query also touches upon whether using the current account for personal expenses poses any problems.

Dr. Personal expenses/Drawings

and this expense will not be allowed as deduction while computing Profit
Thank you sir, any problem with us because partner used current account

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register