13 May 2016
Dear All, Proprietor has spends expenses like restaurants, CCD etc(for self and some times for clients) from debit card and volume of transaction also is big approx 20-25 transaction per month. Can it be allowable expenses and can it be charge to profit and loss account and if yes then under which GL head it should be treat or it should charged to Capital Account.
13 May 2016
Expenses Related To Personal should be treated has Drawing, Expenses Spent With Client can be treated as Business Promotion Expenses if it is spent to staff than staff welfare Expenses. Expenses of Personal nature is in admissible expenses should be treated as Drawings.