Travelling expense

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Abhishek Jain (Querist)
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11 July 2012 If an employee of a company spends money in a restaurant for food then will it be debited to travelling Expenses. In my opinion it should be debited to staff welfare. Plz tell me whether I'm right or not. The Accountants at the Client Place are saying that it is rightly debited to travelling expenses

Tushar Desai

Tushar Desai (Expert)
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11 July 2012 It depends on the Circumstances.

Case 1: If an employee do so while travelling for company's work, it is taken under Travelling Expense.

Case 2: If the expense is made during an office party or during casual meet-up of employees, it is taken under Employee Welfare