Journal date

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2016 dear all
if i given rs 50000 to one employee for expenses use only in cash on 20/1/16 and on 17/2/16 say after around one month they have given me expenses details and they made expenses on different date.so can i make journal on 17/2/16 or i have to make entry for particular expenses on the date when it incurred.b coz if i will make entry on that particular date when expenses incurred i saw that the journal number has been changed

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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21 February 2016 The payment was made in cash. As per the provisions of section 40 A (3) of the Income Tax Act, 1961 any cash payment in excess of Rs. 20,000/- is disallowable and will be reflected in your Tax Audit Report. If a single Journal Voucher is passed on 17th February 2016, the A.O. will refer to the entry in the cash book since the advance is in the name of the employee.

I would suggest that the expenses be booked under different Journal Vouchers such that the expenses booked on a particular day in the name of the employee is below Rs.20,000/-.

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