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Personal credit card using for business purpose
Can anyone help me out that whether a personal credit card of partners can be used for firm transactions (i,e for business purpose?)
Replies (4)
Yes. The business organisation can reimburse such expenses to them via cheque and book expenses in the books of accounts.
In such cases what accounting entries can be made in the books of accounts at the time of payment and reimbursement?
Hi Sreeja,
Yes partner's personal Credit card can be used. The journal entry will be:
1) When expense occurs
Expense Account Debit
Partner's capital account Credit
2) When Reimbursement
Partner's capital account Debit
Bank Account Credit
I greatly enjoyed answering your question.
Thought it would be interesting to connect on LinkedIn for more such discussions https://www.linkedin.com/in/ca-tapasya-bakshi-50545491/
Thanks!
Thank you so much tapasya😊
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