sruthy (article) (34 Points)
18 April 2023Hii All,
How we treat cash management expenses in tally, means we withdrawn some amount from our current account for cash management expenses and repaid the same amount within 2 or 3 days.so ,what are the journal entries and under what head it will comes in tally.
Regards,
Sruthy
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 18 April 2023
If you follow the accounting conventions it's a lengthy process. You have to create a ledger for that under capital. Then Dr. Capital and credit drawings amount. Then Dr. Drawings and cr. Bank account. Rather, one can manitain a ledger under indirect expenses and Dr. Withdrawal expenses and cr. Bank. Then Dr. Capital and Cr. Capital account. But the second method could hamper ratios. So first method is best because this is not a commercial transaction. If the owner withdraws for business use, then use this method.
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 19 April 2023
Sorry meant meant dr.capital and cr. Bank - this is not an entry but a reconciliation. I couldn't sleep till now.
Then Dr. Capital and Cr. Capital account.(wrong) So it's just Dr. Drawing expense and Cr. Bank if owner withdraws for business purpose.
NARENDRA
(ACCOUNTS MANAGER)
(1994 Points)
Replied 19 April 2023
1.Cash A/c Dr.
to Bank A/c ( when cash withdrawal from bank )
2. Expenses A/c Dr.
To Cash A/c ( for expenses paid )
3. Bank A/c Dr.
To Cash A/c ( Cash Deposit in Bank ) .
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 19 April 2023
Now big blunders happen everywhere and this is one. I'm insured under audit threshold.
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