Rajat Sharma (499 Points)
19 November 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 19 November 2021
the company spends money from its pockets and claims it or else takes the money from counter and spends on miscellaneous expenses.
Eg. money drawn and spent on purchase of coffee
then, that amount will be subtracted from cash in hand.
If you paid for the coffee and later on claim it from the company
that is also subtracted from the cash in hand balance.
This is for impress account books. I will create a ledger called imprest accounts and debit and credit the amounts accordingly.
create imprest account on 1/1/2022
Imprest a/c 100
To bank a/c 100
Then drawn money for coffee or claimed money
By coffee expense/employee a/c
To Imprest a/c
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 19 November 2021
*** I would prefer an imprest ledger over books without debits and credits,
CAclubindia
