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Statement of Financial Position for sole trader

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Statement of Financial Position for sole trader

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • March 29, 2019 at 1:49 am #510745
    agathar
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    If the owner takes the business vehicle for personal use and consumes fuel that was meant to be used for businesses purposes, does the cost of the fuel consumed become Drawings or it is an expense to the business.

    March 29, 2019 at 6:39 am #510762
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    If the fuel is used for business purposes then it is an expense of the business (and not drawings).

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