Rudrayani Shedjale (Assistant Accountant) (751 Points)
13 June 2013Hi
to incur petrol expenses we refill BPCL petro card online for which we show that cash for it recd fm Proprietor.We show it under unsecured loan(Liabilities).At the time of refilling petro card,entry has been passed as BPCL petro card Dr.to Bank
is it right?
Also want to know how to book the expenses against this account?
pls guide
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 14 June 2013
when you refill the petrol Debit Petrol A/c and credit the Petro Card Account.
while making the payment debit Petro Card A/c and credit Bank A/c
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 14 June 2013
petrol account under indirect expenses & petro card account under unsecured loans?
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 14 June 2013
yes for petrol exp, but Petro Card under Current liab lities. It's not a loan that is taken but you are incurring an liability that needs to be paid each month.
Sonu Kumar
(Account Manager)
(665 Points)
Replied 15 June 2013
Petro Card Account will be Created under Current Assets, Its not a Liability..... While Using Petro Card for Petrol Then Dr. HSD/ Petrol/ Vehicle Maintenace and Credit the Petro Card Ac
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 16 June 2013
but to refill the petro card propritor gives the money.so we r treating it as loan taken fm him.i.e. unsecurecd loan.isnt it right?
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 17 June 2013
Why proprietor is requried to give money from his pocket.
Is he not making the payment from his current account used for the purpose of carrying on his business.
HARI PRASAD
(M.COM)
(172 Points)
Replied 17 June 2013
hello
why dont you show money received from ur proprietor as advance received for expenses grouping under Loans & advancess of current asset master ledger. It is just as simple as
Advance againest expenses/petrol expenses a/c Dr
To bank a/c
when expenditure is being booked
Petrol expenses a/c Dr
To advance againest expenses/petrol expenses
I conclude
Regards
Hari
CAclubindia
