Need suggestion regarding accounting entries.

This query is : Resolved

Guest

Guest (Querist)

15 December 2011 We are an Interior Designers Pvt Ltd. Co in chennai. We do Interior Designers work for corporate. we do outstation projects also. in Mumbai there is a big project going on, for that we have 2-3 site supervisiors available. sometimes in urgency of fund for site expenses we transfer the fund to this supervisior personal A/c from our Co. A/c. Plz suggest me how can I adjust or how can I show this amount in our accounts.

Ravindra Srinivasa

Ravindra Srinivasa (Expert)
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16 December 2011 1. When the company transfer amount from its account to the account of employees to carry out the work and to meet the expenses at the construction site, then in the books of companies,

Debit - Employee Account (under loans and advances group )

Credit - Bank Account.

2. When the employee submit the accounts for the money he received, then

Debit - Expenses Account
Credit - Employee Account