Personal drawing in trading goods

Accounting Entries 639 views 4 replies

If a Proprietor or a partner withdraw goods in his own business how to treated the entry if input vat is applicable? is there is any way to treat it is a cash drawing or any other way to treat it as a normal drawing? plz reply this 

Replies (4)

if the same person having one more sole right in another business it is illegal, if one of the partner will draw goods, please issue invoice how you normally doing, every taxs are applicable.

in my view

Drawings

To Purchases

To Input VAT

 

An expert please confirm

In case of final consumption of goods by partner himself INPUT VAT over that good will also be absorbed by partner using that good. Partnership firm can not claim INPUT VAT on those goods which is utilized by partner for his personal purpose but not for further value addition.

 

Drawing A/c Dr.

       To Purchase/ Cost of Production

        To Input VAT

agree with entries of shivani mam and samrendra sir...

i.e.

Drawings A/c Dr.
To Trading A/c or Goods consumed A/c
To Input VAT


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