Tally Entry Purchase Item For Personal Use

This discussion clarifies the accounting treatment for a refrigerator purchased by a director for personal use, with payment made from the company bank account. The consensus is that the purchase should not be recorded as a business asset or impact business accounts. Instead, the director's current account should be debited, and the supplier credited. The GST input tax credit should not be claimed, and the refrigerator should not appear on the balance sheet. This entry will later be settled against the director's remuneration.