1.My company's V.P paid his house rent and electricity bill from the Company's bank A/C(he also provides capital to the co.) so how can i treat this entry.........?
08 January 2008
DR. VP'S PERSONAL ACCOUNT CR. COMPANY'S BANK ACCOUNT THEN DEPENDING ON THE COMPANY'S EMPLOYMENT CONTRACT WITH HIM,THE EXPENDITURE CAN BE TREATED AS BELOW: AS PER COMPANY'S CONTRACT IF COMPANY HAS TO BEAR SUCH EXP.(THOUGH TAXABLE IN HIS HANDS AS PERKS AND FBT FOR COMPANY), DR.LEASE CHARGES/ RENT (FOR HOUSING HIRED BY COMPANY) DR.ELECTRICITY CR. VP ACCOUNT. IF HE IS NOT ENTITLED FOR THESE AMENITIES AS PER CONTRACT,RECOVER FROM HIS SALARY AND CREDIT HIS ACCOUNT AFTER SUCH RECOVERY. R.V.RAO
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