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Treatment on the Occasion of Fathers Day

Akshay Sharma (Student) (24 Points)

17 August 2023

The director has paid 5100 to her father on the Occasion of Father's Day from the company's account.

What will be the journal entry of the same in tally prime and also tell under which group director comes in tally prime.

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7 Replies

yogi kukreja (7 Points)
Replied 17 August 2023

Dr. Drawing A/c

Cr. Bank a/c or cash A/c

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CA. Roopali Kadam (Jobs on assignment basis.) (1459 Points)
Replied 18 August 2023

Director's A/c Dr

To Cash/Bank A/c

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CA. Roopali Kadam (Jobs on assignment basis.) (1459 Points)
Replied 18 August 2023

Originally posted by : yogi kukreja
	Dr. Drawing A/c Cr. Bank a/c or cash A/c

Drawings A/c in Company??

That too for Director( Is not necessarily Owner/Shareholder) ??

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prasad Nilugal ( GST Practitioner & Accounts ) (14688 Points)
Replied 18 August 2023

Also If Director is return that amount then Directors A/c Can show under Loan & Advance , In current assets , If he is not return back then Directors Expenses A/c , will be under Indirect Expenses, P&L A/c .

yogi kukreja (7 Points)
Replied 18 August 2023

U r right mam sorry I don't seen complete question

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prasad Nilugal ( GST Practitioner & Accounts ) (14688 Points)
Replied 18 August 2023

Any amount to director is prohibited under 185 of the Companies Act , so please check section 185 is applicable in your Case or not .

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 18 August 2023

No relationship exists in business entity concept.

Dr. Capital- equity

Cr. Drawings-equity

(Drawing amount is prepared)

There is a thing beyond it called reconciling

Dr. Drawing expense- equity

Cr. Bank

These r the accounts which get involved during this transaction. The first entry doesn't disturb balance sheet equation and the next one talkies both of them