Can C.C. taken on hypothecation of stock and book debts be used for payment to vendor to purchase a car. The car is used in the business of the borrower.
Similarly can the installment of unsecured loans, for business purpose, from NBFCs can be paid from the C.C. A/c.
Please suggest.
You can use CC Account for purchasing Car or Paying the EMI but Never use short term borrowing to cover long term debt.
Jai Shree Ram!
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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