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Credit card use by proprietor

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Querist : Anonymous

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Querist : Anonymous (Querist)
06 April 2013 Dear Experts,

I am working in a proprietorship concern.My proprietor is purchasing and paying business bills like telephone and electricity bills through his two credit cards.Can, I update these transactions as follows:
1) at the time of doing transactions:

Electricity exp....Dr.
to Credit card A/C (Current liab in B/S)

2) at the time of paying credit card payment:

Credit Card A/C...Dr
to bank a/c


Please suggest ......
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Dintakurthi Tirumala

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Dintakurthi Tirumala (Expert)
06 April 2013 Yes, you do like that. In case of any personal expenditure incurred by the proprietor (i.e expenditure which is net related to business and/or doesn't allowed as business expenditure) through his credit card then give debit to the Capital account as drawings at the time of such expenses incurred.

OM SAI SRI SAI JAI JAI SAI
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Querist : Anonymous

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Querist : Anonymous (Querist)
06 April 2013 Thank u sir.
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