Query regarding proprietorship business accounting
This query is : Resolved
16 October 2018
R/sir
Kindly request to resolve my problem in proprietorship accounting as soon as possible:-
1.) If salary or any remuneration is paid to proprietor is it allowed as business expenses or not
and
2.) If for proprietorship business, proprietor uses their own property and for this if Rent paid by business to proprietor is it allowed as business expenses or not.
(If we consider above both transactions by considering "Entity concept" of accounting)
Kindly request to resolve my problem in proprietorship accounting as soon as possible:-
1.) If salary or any remuneration is paid to proprietor is it allowed as business expenses or not
and
2.) If for proprietorship business, proprietor uses their own property and for this if Rent paid by business to proprietor is it allowed as business expenses or not.
(If we consider above both transactions by considering "Entity concept" of accounting)
17 October 2018
1. No. It's not expenses and it's drawings.
2. As per Income Tax view no more effect in this transaction. So, Better to avoid this one.
2. As per Income Tax view no more effect in this transaction. So, Better to avoid this one.
17 October 2018
R/sir
I have to ask is it apply only on proprietorship business
I have to ask is it apply only on proprietorship business
17 October 2018
As per Your query.. Yes. It's based on proprietorship...
14 October 2021
No. Such expenditures are not allowed in proprietorship firm.
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