personal expenses of boss treatment in sole proprietor business



our sir paid all the expenses of his family and him are paid through bank a/c of business and how to show all of them in accounts,those expenses are not business expense so how to treat them??
 
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CA Finalist

The personal expenses should be treated as drawings. The journal entry for the same is:

Drawings a/c/ Capital a/c Dr.

  To cash a/c

 
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ok thank you

Total likes : 1 times

 
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what are those personal exp. if it's related to donations medical insurance etc. then it is deducted under chapter Vi a.
 
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no, credit card bills, all personal payments related maintance of home and his own sir
 
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ok that's fine then. show it as drawing from capital account of proprietor
 
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ok tq
 
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Yes, treat it as personal drawings.

 
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