Gunjan agnani (kanpur) (74 Points)
05 February 2018I AM CURRENTLY AUDITING AN AUTOMOBILE COMPANY, AND HERE I HAVE FOUND AN ADVANCE PAYMENT IN CASH OF RS. 100000 AS TOUR ADVANCE, GIVEN TO THE STAFF. THE MONEY HAS BEEN GIVEN FOR THEIR VISIT TO JIM CORBETT NATIONAL PARK.
SO MY QUESTION WAS WILL IT BE DISALLOWED AS IT EXCEEDS RS. 10000 AND IT IS AN NON OFFICIAL EXPENDITURE?
CA Naveen Chand
(Chartered Accountant)
(12729 Points)
Replied 05 February 2018
DISALLOWED EXPENDITURE AS EXCEEDS RS 10,000
Prajjwal Kaushik
(Finance Professional)
(6216 Points)
Replied 05 February 2018
But make sure that is not in form of Imprest. Generally, companies disburse such money in form of imprest which is later on reconciled and adjusted through a bank.
CAclubindia
