Accounting of

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P.C. Joshi (Querist)
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14 July 2015 A does the business of organising study trips for various foreign universities who send their students for study trips in India.

The payment of project typically consists a certain % as payment professional service charges and reimbursement of expenses on actual basis incurred by A which includes tavelling/lodging boarding/site visits of the students during the study trip in India and educational seminars etc.Funds are released by clients in advance or partly advance and partly in the course of program.

While there is no issue in accounting of the serevice charges received by A which is booked under his professional/consultancy income. But how to show the expenses in tally(under which group) which are incurred by A and ultimately reimbursable by client. In short, can we we route these expenses and payment received against them through P&L a/c of A since they are not his business expenses. Or we have to show them as a current a/c of the client like we open an account for a particular project in Debtor group in which credit all the receipts and debit all the expenses. But there many such clients.

Can anyone CA friend please guide and also let me know if there is any accounting standard of ICAI to deal with this types of accounting.

Thanks & Regards

P.C. Joshi

P.C. Joshi

P.C. Joshi (Querist)
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21 July 2015 May I have any response please.