Plz help

 

  • My client (Mr.X) is doing a proprietorship business (Architectural concern). how to treat the following transaction/how to pass journal entry
  1. Mr. x’s residential flat rent paid through  proprietorship concern bank a/c (M/s A) – Rs 12500
  2. External HDD for office use -4700/- = is it treated as a revenue item or capital item
  3. Proprietor attend a party in a hotel, amount paid by his proprietorship concern – 30000/-
  4. Amount paid to Club annual membership – Rs.50000
  5. Surveying and mapping charges - 5500
Replies (1)
  1. Drawings
  2. Capital asset
  3. If expenses are related to business, then entertainment or staff welfare as applicable. If personal in nature, then drawings
  4. Same as 3
  5. Account head can be created as it is

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