Dear experts,
from april 2015 i formed a partnership firm for a manufacturing business. My partner brought in
building land and cars as his capital and i brought 10 lakh as the capital.
now my query is he is keeping books and he is making entry of the fuel used for cars in the vehicle
expense. I am not taking fuel as expense from company and directly paying from my pocket. i use
scooter.
Also last month we had a repairing of the existing building around 2 lakh rupees. that all vouchers
are being entered into our manufacturing firm as expense.
My query
1.) The car he uses and enters its expense into our joint company then can i say it is wrong that
it should be taken from his personal payment.
2.) Also the building being his own capital. then the expense done on the building should be from his
profit share and not as a expense of the company.
Are the above 2 points of mine valid?
Please guide.
thanking you
CAclubindia
