Credit card entry

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priya

priya (Querist)
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14 February 2014 credit card expenses amt. deducted from companies a/c . what should be entry in tally?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 February 2014 debit the relevant expense account. the payment due to credit card provider should be reflected as short term liability.

priya

priya (Querist)
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15 February 2014 sir i dont get it
and I have also query that is company has credit card. bank provide credit card to only personal ac na or also provide to company a/c

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 February 2014 irrespective of whether the credit card is in company's name or individual name, the entry will remain the same.

Expense Head Dr (nominal expense A/c)
To Credit Card Co A/c (short term liability)

priya

priya (Querist)
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15 February 2014 thanx sir. Because of you I can solved my query.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 February 2014 you are welcome priya..