The company has paid 4000 for the cake on the Occasion of New Year for New Year Celebration
What would be the Journal Entry?
Since these expenses are not for business purpose, you Can show it as General Expenses. write all details in narration.
General Expenses A/c Dr 4000
To Trade Creditors A/c Cr. 4000
( Expenses for purchase of Cake for new year celebration)
payment entry
Trade Creditors A/c Dr 4000
To Cash / Bank A/c Cr. 4000
( payment made)
These expenses may not allowed for income tax purpose .
CAclubindia
