Company cash related query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2013 Dear Sir,
mere company me koi director paisa kisi client se leta hai then wo ya to usme kuchh paise personal expenses me use kar leta hai aur kuchh paise co. ko de deta hai to is case me tally me kya entry karni chahiye.

Rupesh Jain

Rupesh Jain (Expert)
Follow

19 August 2013 no entry for director take money for his personal exp.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

19 August 2013 if it first takes loan on behalf of co from clients and then for personal exp it should be accounted in directors loan a/c.

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2013 thanks for advise experts

CA UMESH DULAL

CA UMESH DULAL (Expert)
Follow

19 August 2013 it is a wrong practice ask him to stop this practice.

as far as entry is concerned, treat the expenses incurred by director for personal purpose as loan to director.

however if he has beneficial interest of 10% or more in the company, the company is liable to pay dividend distribution tax on such loan even if it is repaid.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
Follow

19 August 2013 There are different types of opinions can be given in your case

Ist of all it This practice should be stop as soon as possible all cash relating to company should be first handed over to the company & then accounted in Books of Company, if these types of cases still exist, you must debit Director personal/Imprest A/c after taking gross cash in books of the company

One other possible case also where director directly retain some cash in against his/her actual travelling & conveyance Expenses, you have to follow the same procedure as mentioned above & clear Director Debit balance by his/her actual Expenses

Regards,