23 November 2009
It seems to be a promotional expenses as they have been incurred on guests & consultants which are not the employee of company. Had they been the employee of company, they should have been charged to travelling & lodging exp.
23 November 2009
In my opinion, it should be accounted as travelling expenses. As far as company is concerned, they have incurred expenses on travelling.
A regular visit by customer or supplier or auditor etc. can not be termed into business promotion expense.
Now the matter differs if it this travel is specifically incrred in relation to promoting the business. In that case, yes, it is promotion expenses.
CAclubindia
