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Tally entry

Saroj Rana (MBA Finance) (417 Points)

02 January 2008

Dear all,
Can some body give the solutions of these Questions....?

1.My companys V.P paid his house rent and electricity bill from the Company's bank A/C
so how can i treat these entries in tally.

2.what would be the accounting treatment of these item in tally 9.0 ?
Gifts purchased from ABC Co.( but I don't want to maintain that ABC Co's ledger)

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12 Replies

shiji.b.s (studying) (40 Points)
Replied 02 January 2008

1. i think the jouranal will be like this, rent account dr.xx electricity bill account dr.xx company's bank account xxx 2.u just treat it as a cash purchase. if this is not right answer please forgive me and inform me the right answer.

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P.R.VITTAL RAO ( Professiob) (32 Points)
Replied 03 January 2008

For the point No 2, the entry will be Entertainment A/c Dr to Cash/Bank A/c This will avoid the name of the receiver kin the books.

P.R.VITTAL RAO ( Professiob) (32 Points)
Replied 03 January 2008

For point No.1., if the V.P. is returning the amount back to the company, the entry will be V.P. (personal name-Debtors)a/c Dr to Ele.charges A.c to Rent A/c. Ele, Charges A/c dr Rent A/c Dr to Cash/Bank A/c. When amount received from V.P Give credit to personal account of V.P thourgh Cash/Bank book

P.R.VITTAL RAO ( Professiob) (32 Points)
Replied 03 January 2008

For the point No 2, the entry will be Entertainment A/c Dr to Cash/Bank A/c This will avoid the name of the receiver kin the books.

Saroj Rana (MBA Finance) (417 Points)
Replied 03 January 2008

Mr.Rao

I think this is not the right entry because these expxnses are personal in nature

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shiji.b.s (studying) (40 Points)
Replied 04 January 2008

thank for giving me the right entry.

CA. Aryendra (Chartered Accountants) (1233 Points)
Replied 04 January 2008

For point No.1., This expenses of personal nature so it will not be allowed in the name of company therefor there is no need to post in expense head entry will be V. P. Dr. To Bank Account (Being expenses of V. P. Paid by company) Second entry for when amount received from V.P. Bank/ Cash DR. To V. P. 2. If payment in cash or Bank then you can avoid entry otherwise you can not avoide you have have make entry