23 February 2010
Wheather payments made towards instlments of Housing Loan & Car Loan are deductible from personal drawings of a proprietor of a firm. Please clarify ? What exactly the nature of this expence is ? Where to show the principal amount and where to show interest amount?
If u r using the car for business purpose then u can claim interest as expense and loan to liability side.
For home loan :- Interest and principle amount paid is to be deducted as drawings. As it is proprietorship firm u can show House property on asset side and loan on liability side.
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