Payments or journal ?

This query is : Resolved

Hemant Tanwar (Querist)
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10 January 2014 Sir ,
If we give Travel advance to our employee , than should it be recorded in ' Payments ' or in " Journal " ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 January 2014 it will be in payment entry

A. Sankaranarayana

A. Sankaranarayana (Expert)
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11 January 2014 Dear Sirs,

1. If, Cash, Bank, Purchase Sales not involved, then you go for Journal.

2. Whiling giving travel advance pass like this

a. IOU Ramesh
to Cash

at the time of settling the travel advance with supporting vouchers.

b. Travelling Exp. A/c Dr.

To IOU
To Cash (payment of bal

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Hemant Tanwar

Hemant Tanwar (Querist)
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11 January 2014 Then , i can take it as a rule that , " whenever Cash is involved , it must be recorded in Receipt or in Payments . Cash can never go through Journal ?