Bike purchase for personal use
ABHI KUMAR (710 Points)
04 April 2021ABHI KUMAR (710 Points)
04 April 2021
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 04 April 2021
Nandakumar K Konkar
(Partner)
(246 Points)
Replied 04 April 2021
Since bike is for personal use, it is better to pay from Savings Bank A/c so that it is not shown in business accounts at all.
Alternately, you may pay from business Current a/c with 2 options: (1) Debit Drawings or (2) Debit Motorcycle a/c in business books but don't claim depreciation (better for control purpose).