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Accounting Entry-sofa Cover

30 March 2010

Dear All,

we purchased the Sofa cover for the Tables and Chairs. Under which group or Expense Sofa Cover it will come...............................

And also we purchased the cloths for the Employees under which head it will come

Cloths is expense or Asset.....................

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4 Replies

Kaushik Vankadkar (Service) (350 Points)
Replied 30 March 2010

If the amount of sofa cover is considerable then book it under the head "Furniture and Fixtures" else "repairs and maintenance"

Cloths will be booked under "Staff welfare"

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CA KHAN AURANGZAIB (ERP FINANCIAL CONSULTANT) (85 Points)
Replied 30 March 2010

var addthis_config = { services_compact: 'orkut,facebook,twitter,linkedin,yahoomail,gmail,hotmail,more' } Simply thsese expenses are in the nature of maintainance of office. Therefore you can post these entry in Repair and maintainence of office.

For employee cloth, as per materiality concept any transction which have any material effect on profit and loss statement, can post in a seperate ledger , therefor in respect of these concept, you can create a seperate ledger account under the major group staff expeses. Cloth is not a assets, its generaly expenditure .