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sodexho

sunil (audit staff) (34 Points)

15 March 2011

HI,

I am sunil.Doing ca final. I am currently doing Internal audit for a company. They purchase sodexho coupons which r distributed to the employee.There are cases where all the coupons r not distributed.My query is whther the the purchase amount to be showed as expense or only the sodexho coupons which are distributed to be shown as expense? if all are shown as expense then what about the counpons which are not distributed?

Please help me out in solving my clarification ASAP

Thanks&regards

Sunil

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11 Replies

Shriram Ramachandran (IPCC Student CWA Inter & Processing officer in GNSA Infotech Ltd) (492 Points)
Replied 15 March 2011

Hi Sunil,

The company should show the whole purchase amount of SODEXHO as expenses & remaining which r not distributed is a loss only for the company.

In next purchase the company has too be careful in this regards & have to purchase in a smaller volume to avoid this loss.

Thanks & Regards

R Shriram

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1 Like

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Ashish.M.Jain (Article) (32 Points)
Replied 16 March 2011

Hi,

What is the rate of depreciation for Televisions as per IT act and as per Companies Act ?

Kindly post in your replies quickly.

Thank you

Regards

Ashish

Piyush Loya (Senior Manager - Finance) (33 Points)
Replied 17 March 2011

Hi Sunil,

Company has purchased sodexho coupon in bulk for the purpose of distributing it to employees. In my opinion, it should be expensed out as and when distributed to employees. balance coupon should be accounted as other assets assuming it is not lost and held for future distribution.

Regards,

Piyush Loya

Originally posted by : sunil
	HI, I am sunil.Doing ca final. I am currently doing Internal audit for a company. They purchase sodexho coupons which r distributed to the employee.There are cases where all the coupons r not distributed.My query is whther the the purchase amount to be showed as expense or only the sodexho coupons which are distributed to be shown as expense? if all are shown as expense then what about the counpons which are not distributed? Please help me out in solving my clarification ASAP Thanks®ards Sunil

1 Like

Shriram Ramachandran (IPCC Student CWA Inter & Processing officer in GNSA Infotech Ltd) (492 Points)
Replied 17 March 2011

But Piyush Loya As per sodexho concept if it is not used with a month then it losses its value so i cant b show it under Assets.

Thanks

R Shriram

Piyush Loya (Senior Manager - Finance) (33 Points)
Replied 17 March 2011

Normally, sodexho coupons comes with one year validity and if this is the case it should be classified in current assets. If validity expires or as you say only for a month, it can be charged to P&L .

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Shriram Ramachandran (IPCC Student CWA Inter & Processing officer in GNSA Infotech Ltd) (492 Points)
Replied 17 March 2011

Till now i never seen a sodexho coupons with one year validity

Thanks

R Shriram

Shriram Ramachandran (IPCC Student CWA Inter & Processing officer in GNSA Infotech Ltd) (492 Points)
Replied 17 March 2011

In tat case if the sodexho coupons has 1 year warrenty then i agree with Piyush.

Thanks

R Shriram

sunil (audit staff) (34 Points)
Replied 17 March 2011

hi. thanks. now i wil explain the process followed

the sodexho is purchased based on list of employees for tht particular month.it is distributued in the 1st week itself. now few employees have not taken from the admin team.

accounting followed - whole amount is expensed off.

my doubt -1) if expensed fully - then no control over the remaining coupon as it is not shown in books.

2) if not expensed fully - then understatement of expenses in one month and in the month they receive the coupon, over statement of expense.

they are cases where coupon is expired. but they have option of replacing the coupon with the new ones. so there is no loss for the company as such.

i wanted everything to be routed thru accounts, where it should correct expense for the month,then what is exactly distributed then closing value in assets. am i rite what i wanted?

Suggest please.

thanks a lot everyone for the earlier replies.

Shriram Ramachandran (IPCC Student CWA Inter & Processing officer in GNSA Infotech Ltd) (492 Points)
Replied 17 March 2011

In tat case u can pass the entries as follows

When Sodexho pass u receive

Sedexho pass (CA) a/c dr

To party a/c

When u distribute the pass

Expenses a/c dr

To sedexho pass a/c

when payment to party

party a/c

To bank/cash

If u pass the entry in this manner u can have control over the movement of Pass. When there is any closing balance which u will return & get new one no entry is required, when u extra purchase for next month only value for the extra pass should only be entered. so that u can have the control & correct closing can be obtained.

Thanks if any wrong, plz retify me.

R Shriram