Labour Charges Paid from Capital account

Dear Sir,

proprietor paid labour charges from his personal account/pocket so please suggest below entry in books of account is correct

Labour Charges Dr.
Labour Charges payable Cr

Labour Charges payable Dr.
Capital account Cr
Replies (2)
Quick Summary
This discussion addresses how to properly record labour charges that the proprietor has paid from their personal funds. The suggested accounting entries involve debiting Labour Charges and crediting either Labour Charges Payable or directly the Capital account to reflect the proprietor's investment. The aim is to ensure accurate bookkeeping when personal funds are used for business expenses.

Labour charges payable Dr.
Capital A/C Cr
Labour Charges
To Cash A/c.

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