Accounting entry

This query is : Resolved 

08 January 2008 Dear all,
Plz help me,

1.My company's V.P paid his house rent and electricity bill from the Company's bank A/C(he also provides capital to the co.)
so how can i treat this entry.........?

Thanks in advance

08 January 2008 Hi Saroj,

The house rent and electricity shall be taxed as perquisites in the hands of your VP.

Rgds/
Vineet

08 January 2008 Sir plz give me the acounting treatment


08 January 2008 DR. VP'S PERSONAL ACCOUNT
CR. COMPANY'S BANK ACCOUNT
THEN DEPENDING ON THE COMPANY'S EMPLOYMENT CONTRACT WITH HIM,THE EXPENDITURE CAN BE TREATED AS BELOW:
AS PER COMPANY'S CONTRACT IF COMPANY HAS TO BEAR SUCH EXP.(THOUGH TAXABLE IN HIS HANDS AS PERKS AND FBT FOR COMPANY),
DR.LEASE CHARGES/ RENT (FOR HOUSING HIRED BY COMPANY)
DR.ELECTRICITY
CR. VP ACCOUNT.
IF HE IS NOT ENTITLED FOR THESE AMENITIES AS PER CONTRACT,RECOVER FROM HIS SALARY AND CREDIT HIS ACCOUNT AFTER SUCH RECOVERY.
R.V.RAO

09 January 2008 thanks a lot

10 January 2008 Assuming its company,

the rent and eletricity charges are Perks.
Hence FBT is attractable

Amount so invested may hold as Share application money then you can transfer to Share capital if the authorised capital is with in the limit

17 March 2008 THIS IS A PART OF MANAGERIAL REMUNERATION



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