I'm working as internal auditor of a concern functioning in KANDLA sez. Accountant has shown an expenditure on buying gifts for Deputy D.C. who visited their office on certain dated but for office purpose.
What the accountant has done that he has booked the above expense under the head STAFF WELFARE.
Can we do so? what are other wise option to an accountant in various circumstances?
21 January 2011
Well the accountant does not have much choice than to book under staff welfare gifts given to personnel of IT, Serv tax / excise depts.
If that is not to be shown there it can also be booked under Public relations exps, which is next closest, choices are limited to account for these
CAclubindia
