One of my employee paid leagal expense behalf of the company..& I have to reimburse it to him..what and all journal entries i should pass.can any one tell me...
17 March 2012
At the time of reimbursement:- Legal Expenses a/c Dr To Cash/Bank a/c (Being Legal expenses reimbursed to the Mr.X employee of the company which are met by him on behalf of the company) (Or)
Second Choice:
At the time of expenses met by him:- 1) Legal Expenses a/c Dr To Mr.X a/c (Being Legal Expenses related to the company paid by the Mr.X which has to be reimburse) At the time of Reimbursement of amount:- 2) Mr.X a/c To Cash/Bank a/c (Being reimbursement expenses payable to Mr.X now paid) OM SAI SRI SAI JAI JAI SAI
CAclubindia
