How to treat when partner's personal vehicle used for business use.? & how to reimburse expense to the partner?
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Quick Summary
This discussion addresses the accounting treatment for a partner's personal vehicle used for business purposes. It outlines the journal entries for recording vehicle expenses paid by the partner and subsequent reimbursement. The proposed method involves debiting Vehicle Expenses and crediting the Partner's Capital Account, followed by debiting the Partner's Capital Account and crediting the Bank Account for reimbursement. The partner's account should be shown under current liabilities on the balance sheet.