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Can we take credit card details in the books of accounts
One of proprietor has taken credit card for his domestic purpose. He used the credit card transactions for his personal purpose. But some of the amount transfer to credit card account from firm account. Can we book that transactions as a drawings and if he use the credit card for the business purpose. Can we take as a business part or not. In that case, credit card account should be disclosed the IT return or not
Replies (4)
As credit card is used only for personal purpose, disallow the expenses for payment towards the card. Showing it as drawing will reduce the capital invested in the business. There is no issue in disclosing your credit card account in the return.
If any problem arise when we undisclosing the credit card details in the IT return
Treate all the transfer amount as drawing & his capital amount will decreased with same amount.
But if some of amount has spent for business purpose then count same amount in capital account & capital will be incresed.
thank you for your prompt resonse and valuable suggestions
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