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Pls solve

sakshi (student) (67 Points)

08 July 2014

an expense incurred for the co and taken into the co accounts ... But the bill is in the name of director only there is no reference of the co ...is it correct ??

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2 Replies

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 08 July 2014

yes... it is correct as long as it can be proved that it was incurred for the co.

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RoHaN k (CA & CS) (308 Points)
Replied 09 July 2014

See whether director is reimbursing the same or not i.e. Whther director incurring on behalf of co. or not .Secondly , verify whether it is a general practice of reimbursing in company i.e. other directors/managers too incurres same periodicaly,

all above points to consider whether , director is submiting his personal expenses to company or not.