My organization is a Private Limited Co, having 4 directors. Many a times, these directors spend money for co's purpose through their personal credit cards. Thereafter, the company pays the total due of Credit Cards (Which includes their personal expenses too..!!) through cheque.
Now, the accounting needs to be justified...
How to Account these expenses ? and in what Head..?
Can I raise these Banks (of respective Credit Cards) under the head Current Liabilities / Provisions.
14 March 2011
It is natural and normal for directors to spend money on company's behalf from their credit cards. In these cases you need to make the directors to fill a claim statement and submit the original bills and attach the same with the payment voucher by which you pay to the bank to show that these are business expenses and not personal expenses..
CAclubindia
