Accounts

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nilakantha (Querist)
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05 September 2012 I got a sum of Rs 5000 cheque for making office expenses on 10.08.2012 at the end of the month the total expenses where Rs 3485.
can anybody help me what will be the treatment in the accounts.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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05 September 2012 At the time of receipt of cheque

10.08.2012 Bank a/c dr 5000
To Advance for office expenses 5000
(Being advance received towards the office expenses incurring for the month or period)

At the end of the month

If the balance amount is returned.

31.08.2012 advance for office expenses dr 5000
To office expenses a/c 3485
To bank/cash a/c 1515

(Being advance received for office expenses written off to office expenses and the balance amount is re-paid)

If the balance amount is not returnable and kept for future expenditure adjustment

31.08.2012 advance for office expenses dr 3485
To office exepenses 3485

If the balance amount is not returnable and not kept for future expenditure adjustment i.e profit to you

31.08.2012 advance for office expenses dr 5000
To office expenses 3485
To commission 1515
(Being office expenses adjusted with advance for office expenses and the balance recognised as profit towards commission in office expenses)

OM SAI SRI SAI JAI JAI SAI

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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05 September 2012 If you understand the above then ok. other wise write clearly regarding nature of service provided by you and designation of you, details about your profession etc....

OM SAI SRI SAI JAI JAI SAI

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nilakantha

nilakantha (Querist)
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05 September 2012 Dear sir,
thank you for replying but in the above transaction as you mentioned company had paid cheque so first of all it is an expenses for the company.It should be recor ded in payment voucher. And additional expenses are Rs 3485, how the whole thing will reflect in company account??

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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07 September 2012 I am saying about you are said company first paid Rs.5000 as advance against to the office expenses so first at the time of receipt of amount record it as advance amount received towards expenses and later i.e after incurring expenses then the actual expenses record as expenses i.e write off to p&l Account and the balance if any return to company or treat as profit(if the balance is non refundable) or incase if any balance receivable then treat as debtor(i.e receivable) and at the time of receipt pass the receipt voucher.

OM SAI SRI SAI JAI JAI SAI