Debit note

This query is : Resolved

amardeep singh (Querist)
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04 July 2012 If i issued a Debit Note towards reimbursement of expenses on behalf of client for Filling fees of inspection or form-32 etc, or expenses incurred on bank proceesing fees etc etc...
what will be journal entry for this in my books..????

i passed following entry in tally

party A/c Dr.
To Out of pocket expenses A/c

is it correct??
and if its correct what will be the nature of OUT OF POCKET A/c ????

please respond soon..
thank you

CA. Hari Kishan

CA. Hari Kishan (Expert)
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04 July 2012 firstly you would be expending the amount from your pocket, so the entry can be

OPE account (under indirect expenses or current assets) Dr. to Cash or bank cr.

On receipt or the amount from client you could dr. cash / bank and cr. OPE account.

Also instead of OPE account the amount could be debited to client account also.