26 November 2012
I am working as an accountant for Proprietorship Firm, My Question is which expense of Proprietor can b claimed as expense & which needs to treated as Drawings? any link or website or accounting notes on proprietorship will Do?
When you are doing accounting of Proprietorship, Following two expenses you might come into preview: 1. Revenue Expenditure:- a. Personal: to be treated as Drawings and not to be routed through Profit and loss A/c. b. Official: business Expense 2. Capital Expenditure:- Capitalize as Fixed Assets.
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27 November 2012
Rohin, m still not clear since i referred last year fs which shows directors personal expense in p&l as seperate head in schedule under Administrtave expense, so here auditors are taking his person expens also as a business expenditure hence showin in firms book y so?
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