Accounting treatment

1. purchase a/c. Dr To sundry debtor (name) account 2. Fixed assets a/c Dr To Due to director ( name)

Agree Naveesh

Fixed asset purchased by director or employee: Firstly assess the end use of the asset. Whether it is used by company or by director for personal use. If used by company then entry shall be: Debit Fixed Asset account Credit Director's personal account

For goods purchased by debtor on behalf of company: First you must trace out who has made the payment. If payment is made by company then goods purchased so must be debited to purchase account and credited to debtors account. Then corresponding entry shall be: debit debtors account and credit cash / bank account