SSG (1936 Points)
23 August 2015Can C.C. taken on hypothecation of stock and book debts be used for payment to vendor to purchase a car. The car is used in the business of the borrower.
Similarly can the installment of unsecured loans, for business purpose, from NBFCs can be paid from the C.C. A/c.
Please suggest.
Amrit Singh
(Killer Stud[ent])
(751 Points)
Replied 23 August 2015
You can use CC Account for purchasing Car or Paying the EMI but Never use short term borrowing to cover long term debt.
Jai Shree Ram!
Ashok J
(CA Final)
(880 Points)
Replied 24 August 2015
CAclubindia
