How can i show these entries in my books

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2012 dear all

i have one small business, my friend transferred his personal amount 15,00,000 to my bank account, i had to utilised that amount for my business promotion, after 2 months i paid this 15,00,000 to three parties (each 5,00,000) on behalf of my friend, so now i cleared my friend account

now how can i show these entries in my accounts

if above transaction repeated then is there any problem

please tell me

Sanjay Chauhan (IFRS)

Sanjay Chauhan (IFRS) (Expert)
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17 July 2012 It means that you had loaned Rs 15 lacs from your friend and spent money in your business.

Thus as per bank account, the money is not returned to your friend and is a liability for you.

AMount spend on advertisement is your revenue expenditure and is your loss for the period.

You may also have to accruw interest on Rs 15 lacs unless otherwise agreed with your friend.

It may have tax implications.

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