Expenses Reimbursed
This query is : Resolved
17 February 2010
X Ltd engages in letting out business,
It raises invoices for every month bill?
Water charges for the customer borne by Company and the same is reimbursed from Client
My question is as followes?
Should I debit water chagers in P & L account & credit the amount reimbursed from customer?
Or
not showing the above in P & L account , by giving debit note and adjust through their Account ?
Pls Kindly advice me on the above ?
It raises invoices for every month bill?
Water charges for the customer borne by Company and the same is reimbursed from Client
My question is as followes?
Should I debit water chagers in P & L account & credit the amount reimbursed from customer?
Or
not showing the above in P & L account , by giving debit note and adjust through their Account ?
Pls Kindly advice me on the above ?
17 February 2010
Dear Sanalkumar
As per my opinion,it is better to route it through P&L a/c to have tracking of the transaction in future if any operational hazard is not there.otherwise second option can be exercised.
by routing transaction through P&L,it will give transperancy to the user of financials also.
Thanks
Regards
CA Hiral
As per my opinion,it is better to route it through P&L a/c to have tracking of the transaction in future if any operational hazard is not there.otherwise second option can be exercised.
by routing transaction through P&L,it will give transperancy to the user of financials also.
Thanks
Regards
CA Hiral
17 February 2010
My view
While paying Debit Water charges and credit cash
While reimbursement Credit the Water charges and debit Cash
Mixing with client ledger not good and if you want track clinet reimburment details create cost centre in the name of client do the credit & debit through same cost centre
While paying Debit Water charges and credit cash
While reimbursement Credit the Water charges and debit Cash
Mixing with client ledger not good and if you want track clinet reimburment details create cost centre in the name of client do the credit & debit through same cost centre
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