Pvt ltd companies books of account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2013 Sir,

I have a query regarding the books maintained by some clients

Can employees salary be paid out of OD??

Can personal expense of the directors should be entertained from companies bank account??

And that too when the book indicates huge profits being earned by the company with continuous growth in their turnover??

Sir plz reply to my query as early as possible.

Regards

Kumar

Kumar (Expert)
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01 August 2013
Yes employees salary can be paid out of OD as it is a working capital arrangement

Even if personal expenses are paid, they should be accounted as recoverable from the directors or recovered if possible