Owner personal expenses

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dear sirs
my client make a expenses of rs10000/- for own use but how can I record this expenses in tally prime and what is the effect of this expenses in balance sheet and profit &loss account
thanks in advance and please reply fast
Replies (10)
You will have to show it as drawings from his capital account. Expenses of personal nature will not be recorded in profit and loss account since only business expenditure are shown there
Yes I agreed with Mr CA Altamush Zafar...

@ Sayed Nabil,

Owner's personal expenses can't be treated as business expenses. In case owner doing personal expenses through business account then it will be account in his capital account.

If the firm's account is old then check out the capital ledger. It have two ledgers like Capital A/c & Current A/c (under capital account). You can account the expenditures in Current A/c.

Note :
A) Capital Account -
AA) Capital Account - Only Capital Account created at the time of starting business. Only investment No transaction can be account in this capital account.

AB) Current Account - Owner's all Withdrawings, Depositing for shortage of fund and his own expenditures is accounted in this ledger...


Note: If no need separate ledger then you can account the transactions in single ledger....

 pass Journal entries as follows.

Drawing A/c Dr 10000
To Cash or Bank A/c Cr 10000
( withdrawn from business for personal use)

Capital A/c Dr 10000
To Drawings. A/c Cr 10000
( Drawings transfer to Capital.A/c )

Owner personal expenses to be routed thru drawings. But. in general perso sl expenses not to be charged to revenue account.
Thanks a lot all of you for your valuable time and information

All withdrawals will come from capital accounts. Gain or loss in partnership, I'll calculate it. These partners are really rubbish and they will never earn a fortune in Bangalore 

Owner personal expenses to be charged to revenue account
@ Sabyasachi,

don't give wrong reply...
Typo error
Mmm okay okay Sir....


CCI Pro

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