pass entry

This query is : Resolved

Praveen Sharma (Querist)
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21 April 2009 The co.(like film co.) initially depsosit the amount in a person (production manager) bank account/given him cheque.

further he incur expenses & provide the actual original bill to the said co.

he has no proof of same.

the said person incurs expenses on some items & Bribe.

how we pass entry.

As these amount are neither his income nor his expenses.

like
may be passed

but not showing

1. Bank a/c dr. 50000(salary)+100000(for expneses)
To media co.

2. expenses dr. 50000
To bank 20000
To Bribe 40000

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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21 April 2009 This is to be treated as Imprest account in the hands of the Person (the prodn manager). If you are asking for the treatment in the books of company then it shall be as under:

1. Person A/c Dr.
To Bank Account.

2. Expenses A/c Dr.
To Person Account

Open this person account in Current Assets as it shall be treated as advance first in his hands.

Pls note that do never show bribe in the books, as it will lead you into problems.

Ca. Rajesh Dhama

Ca. Rajesh Dhama (Expert)
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22 April 2009 ask to the person to arrenge false bills of the amount which he incure as a expenditure ask him to provide detail of small expenditure get those apporved by the management and show bribe as a other misc expenditure in the statement and collect small voucher of same amount from any source

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Praveen Sharma

Praveen Sharma (Querist)
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24 April 2009 THanks for Reply Mr. Tarun Maheshwari

But the actual bills provided to the company. there was no record at the production manager.