Rajesh Raman ( ) (292 Points)
03 June 2016* what is the accounting head of the following transaction
1. Amount paid to pollution control board Rs.35000/-
2.Amount paid to Water authority for new connection - Rs.28000
3. Y is the Director of X.pvt he buy the following item through company cash a/c
. a wrist watch from amazon, Rs 55000
b. buy a gift 15000
CA Rohit Jain
(Practice)
(1865 Points)
Replied 03 June 2016
for first two debit Rates & Taxes Account and for the third one if Director bought gift & watch for personal use Debit directors account and the same should be adjusted with his salary afterwards. if not, then debit other expenditure or misc account.
Nishant Singla
(Chartered Accountant in Practice)
(71 Points)
Replied 03 June 2016
Yes, agree with CA. Rohit Jain
CA Harshal Totla
(Chartered Accountant)
(2229 Points)
Replied 03 June 2016
Mr.Rohit Jain is correct. But adjusting the personal nature expenses of director in Misc.expense account is not suggested because auditor will disallow the same during statutory audit or tax audit if it comes to his notice.
CA ABHAY GUPTA
(Practice)
(3230 Points)
Replied 06 June 2016
CAclubindia
