S Sinha ( ) (43 Points)
21 October 2020For Company (Pvt Ltd) expenses (Purchase entries - invoice in name of the company), the Director had paid from his personal account but, the same was reimbursed in next financial year.
What are the correct accounting entries?
Thanks!
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 21 October 2020
1) purchase Expense booking entry
purchase A/c Dr
To Trade creditors A/c Cr
( Booking entry of purchase )
Expense paid by the Director on behalf of company
Trade Creditors A/c Dr
To Director A/c Cr
( Company purchase expense paid by Director )
Director A/c will under current liability in Balance sheet
On 31 st march same will be remain payable in current liability in the name of Director in balance sheet
on same day will transfer to provisions and make provision
Director A/c Dr
Expense payable to Director A/c Cr
( Expense payable to Director transfer form current liability to provisions in liability of Balance sheet . )
next year on 1 st April show as oping credit balance Expense payable to Director A/c
when you pay in the nest year pass entry
Expense payable to Directors A/c Dr
To Bank a/c Cr
( Last year expense paid by Director reimbursed )
S Sinha
( )
(43 Points)
Replied 24 October 2020
| Originally posted by : prasad Nilugal | ||
 |
1) purchase Expense booking entry purchase A/c Dr To Trade creditors A/c Cr ( Booking entry of purchase ) Expense paid by the Director on behalf of company Trade Creditors A/c Dr To Director A/c Cr ( Company purchase expense paid by Director ) Director A/c will under current liability in Balance sheet On 31 st march same will be remain payable in current liability in the name of Director in balance sheet on same day will transfer to provisions and make provision Director A/c Dr Expense payable to Director A/c Cr ( Expense payable to Director transfer form current liability to provisions in liability of Balance sheet . ) next year on 1 st April show as oping credit balance Expense payable to Director A/c when you pay in the nest year pass entry Expense payable to Directors A/c Dr To Bank a/c Cr ( Last year expense paid by Director reimbursed ) |
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Thank you for sharing the information.
Karayil Builders
(3 Points)
Replied 28 October 2024
My name is ABC. If I am the Director of a Pvt Ltd company, and the company's present total cash and bank balance is Rs.0, and I made a purchase for Rs.1,00,000 on 01/01/2024 on behalf of the company (bill issued in company's name) and paid from my personal bank account.
Question: Can I create a petty cash account in my name as "ABC Petty cash" under "Cash in Hand" head, then transfer 1 lakh rupee from another account created as "ABC Loan" created under Current liabilities in Balance sheet, then spend the amount to the vendor as a Payment voucher?
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