Dear Members
We have a Electrical Contactor Company.Which is Two Partner Partnership firm.One of this Partner buy GOLD (In Bill - Purchasere Name other than Partners) & Pay Amount from Firm Bank Account. Fact is it was a Gift which amount is 80000/-.
So, We need help that how to treat in account ? How can do enty in account ? Its allow as expenses ? Or other suggestion regarding this ?
Thanks
Its Personal Gift. We are contractor so we don't need for promote business.
It will be shown as Drawing/withdrawal of the Partner. It will not be shown as an expenses in P&L.
It must be entered as Drawings in the books of the firm.
CAclubindia
