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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??
Replies (7)
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
ok thank you
what are those personal exp. if it's related to donations medical insurance etc. then it is deducted under chapter Vi a.
no, credit card bills, all personal payments related maintance of home and his own sir
ok that's fine then. show it as drawing from capital account of proprietor
ok tq
Yes, treat it as personal drawings.
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