Max M. Barken Drug Co. v. Commissioner

OPINION.

Lansdon:

The issue to be determined in this appeal is whether charging the amount of $1,994.27 to the personal account of Leo Barken during the year in question was in fact a record of actual withdrawals or a mere bookkeeping adjustment without effect on either gross or net income. The taxpayer alleges that it charged Barken’s personal account with the seeming shortages for the sole purpose of balancing its books, asserts that it made no corresponding credit entries on its profit and loss account indicating that such amounts were regarded as distributions of profits, and denies that…