Doubt

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Devendra (Querist)
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27 July 2010 Mr X is a partner in XY and Co. Mr X pays electricity bill of the firm. The entry in the books of the firm will be
Electricity Exps. A/c Dr
To Bank A/c
What will be the entry in his own books of Accounts for the above transaction?

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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27 July 2010 If electricity bill is apid by the partner, the entry in the books of the firm will be :

Electricity Exp. A/c Dr.
To Partners (Mr.X's) A/c

Entry in partners book :
XY and Co. A/c Dr.
To Bank A/c.

CA.Pujah

CA.Pujah (Expert)
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28 July 2010 agreed, because Electricity exp is of the Firm & not Mr X. Similarily payment is not made by the firm but by Mr X.

So, exp will be booked in firm's books crediting capital/ current a/c of partner. And payment will be shown in individual's books as pymt twrds invt/ share in firm

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