Canada Personal expenses?


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Would there be a journal entry for a company paying the property tax for the personal residence of its majority shareholder or would this be violating the separate entity assumption? If no then what accounts would be affected?
 
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Fidget

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A company can pay whatever to whoever it wants unless there's any legalities in your jurisdiction that specifically prevent it. It's unlikely to be an allowable expense for tax purposes though.
 
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Agreed with Fidget. In my opinion this is also a related party transaction that needs to be disclosed under IAS 24 (IAS 24 par 21j)
 

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