Credit card transaction

This query is : Resolved 

Querist : Anonymous (Querist) 10 January 2017

We make payment for the co expenses from the personal credit card in the name of the proprietor. Also we make the deposit in the personal credit card from the co. bank account. How to make accounting entries for the same in Tally.

Gokul Sharma (Expert)
10 January 2017

In the books of company
Expenses Dr
to ABC (personal Credit Card Holder)
(Expense booked)

ABC dr
to Cash
(Cash Deposit in bank)

In books of Card holder
Company A/c Dr
to Bank
(Expense Paid on Behalf of Co.)

Bank A/c dr
to Company
(Amount Recd for exp made on behalf of Co.)

Gokul Sharma (Expert)
10 January 2017

also at year end balance of both Should be matched

Querist : Anonymous (Querist) 10 January 2017

According to me entry will be
Expenses Dr. xxx
To Capital Account Cr. xxx

This is not a correct entry.

Gokul Sharma (Expert)
10 January 2017

crediting current a/c is more appropriate .....

Querist : Anonymous (Querist) 10 January 2017

sir, that means it will be
expenses Dr. xxx
To Proprietor current account Cr. xxx

Gokul Sharma (Expert)
10 January 2017

yes .......................

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