ish kumar sharma (Sr. Manager Accounts & Finance) (301 Points)
17 August 2015hi there,
i just want to ask whether credit card's bill of director of Private limited campany can be claimed in fiancials of the company and if yes in which way and also can we bills outstanding at the year end and in which head?
Harsha
(v)
(76 Points)
Replied 17 August 2015
if the amount was used for company purposes it can be claimed, if the amount is used for private purposes it cannot be claimed.
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 15 September 2015
Important procedures to be followed to avoid future querry/scrutiny:
Open a a/c Under CL - S Crs: Credit Card Payable
Debit Expenses - head wise (if for the Company)
Debit Personal a/c/ Recovery from Salary if so ( Personal Expenses)
Credit the entire amount Credit Card Payable which can be squared off at the time of making Payemnt.
NOTE: After obtaining the statement the person has to declare which is personal & which is official. For Official you can demand bills - its better to highlighted in the statement (if its original) good. Bcoz if tomorrow scrutiny comes after 3-4 years its very difficult to trace/chase biils. Mostof the Bills/Slips will be in was Papaer only which the print will vanish after some time. Its better to write the amunt in ink clearly & take a phoe copy of the bill & the same can be reained along with voucher.
ish kumar sharma
(Sr. Manager Accounts & Finance)
(301 Points)
Replied 19 September 2015
i did the same as you told , but my question is whether there is any legal aspect regarding not to use the personal credit card of the dierctor for company's expenses
CAclubindia
