what accounting entry one has to pass in case of payment made my credit cards of directors or manager or by office personnel on behalf of company or firm for eg. to flipkart or amazon?.
1 Replies
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 13 April 2017
It's always better to use a separate card for business purposes because in scrutiny how will you prove the difference between personal & official provided the ITO did not disallow. Such things happened in my career.
Expenses a.c Dr
Credit Card Payable Cr
at the time of Payment
Credit Card Payable Dr
Bank a/c Cr.
If you are operating more than one card viz., HDFC,ICICI to differentiate you may open as follows
HDFC Card Payable & ICICI Payable so that easy to tgrack.
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