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Bribe

saivarma (articles assistant) (127 Points)

07 February 2011

Dear Freinds ,

In many of the companies , in some sitiutation the company is suposed to pay Bribe to get the work done in time. And my Doubt is how to treat that amount while accouting.

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6 Replies

Mahesh Lahoti (B.com Hons C.S Professional Programme) (1311 Points)
Replied 07 February 2011

ignore the amount

thats it!!!!!!!!!

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saivarma (articles assistant) (127 Points)
Replied 07 February 2011

Dear Mahesh,

If u Dont Know please ignore it, How can we ignore the company funds with out Accouting.First u must learn the accoutancy rules , each trancsation has to be accounted other wise u have to spend that amount from u r pocket.

Rohtash (CA - Final / CS / B.Com) (1140 Points)
Replied 07 February 2011

@ Saivarma : I can't be rite I know but wanna try.

I think 1st v shud be clear about that the particular expense is a capital or revenue, for which it shud be found out if the particular amount is paid towards the work for capital item (such as to the contractor for machinery or alike), the same can be added to the production cost of the same asset.

If the amount is paid for small items such as revenue items, then the same might be disclosed in such small cash expense where you can properly disclose such as for office work, the same can be added under the head office expenses or some other miscellaneous head.

I think the same would be helpful to u, I will also be waiting for the conclusion of the same.

Regards,

Rohtash Hurria.