Ks (Ac) (138 Points)
01 April 2022if a gold firm organize paid event like holi ,garba night etc and the expense like (music ,lighting hotel) incurred is 5 lac
and ticket cost is 5000 per person and 1000 ticket were sold so total revenue is 50 lac rupees so how to record it ?? what are journal entries for it
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 02 April 2022
Ks
(Ac)
(138 Points)
Replied 02 April 2022
1- can we transfer the balance of this expense music lighting etc to one separate account ??
2- what is the taxation for it
3- can we record this types of expense means which are not related to main business operation??
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 02 April 2022
It is to be treated as ancillary to business. Taxation same as business income. Yes you can transfer to one separate account I.e event expenses. Yes you have to record the transaction
Ks
(Ac)
(138 Points)
Replied 02 April 2022
thanx sir for clearing my doubt
1- does this event expenses is tax deductible ?
2- can we record it as income from sale of ticket for event as 45 lacs without recording expense if not why ??
prasad Nilugal
( GST Practitioner & Accounts )
(14803 Points)
Replied 02 April 2022
Rajesh R
(Sr. Manager - Project Finance Audit & Cost Control)
(39 Points)
Replied 15 April 2022
CAclubindia
