Reimbursement entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2014 Hello Everyone,

Rs.10000 was paid to employee for the purchase and he had purchased of RS.8000 only.He had returned the 2000 to the cashier.
what would be the accounting entry in this case.

Regards,
Chirag

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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12 August 2014 Dear Chirag,

Entries

1.) Employee (name of employee)
imprest account Dr, 10,000
To cash / bank Cr.10,000

2.) Purchase / expense account Dr.8000
To employee imprest a/c. Cr.8000

3.) Cash a/c. Dr.2000
To employee imprest a/. Cr.2000

When co. gives some money to spend on co's behalf then employee's imprest account is created (under the head advances)

Regards,
Devanand

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