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Accounting entries

Mohammad Adil (Accountant) (64 Points)

18 December 2015

i am the accountant of (P) ltd. company and I paid the cash for employees id cards and ribbons what will be the accounting entries .and how i keep track of this transaction. please reply soon

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Stranger (.) (5526 Points)
Replied 18 December 2015

If paid from company's cash
General or Miscellaneous Expenses A/c Dr.
To Cash A/c
(Being amount paid for employees' ID cards & ribbons)

If paid by you on behalf of the company

(On incurring expenditure)

1. General or Miscellaneous Expenses A/c Dr.
To "Your Name Imprest" A/c
(Being amount incurred for employees' ID cards & ribbons adjusted against imprest)

(On receiving payment from the company)

2. "Your Name Imprest" A/c Dr.
To Cash A/c
(Being amount due on imprest paid)

Hope ur doubt is cleared now..

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CA Prateek Garg (CA in Practice) (1444 Points)
Replied 18 December 2015

Expense can be debited to "Employees Benefit A/c" or "Staff Welfare A/c"

Staff Welfare A/c ............ Dr. XXX

To Cash XXX

(For Employees ID Cards and Ribbons)

Mohammad Adil (Accountant) (64 Points)
Replied 18 December 2015

thank u very much...and what will be the entries if we dont know the nature of expense and we paid company's cash for exepenses and what will we do when we know about the nature

Stranger (.) (5526 Points)
Replied 18 December 2015

Agreed with prateek garg, it can be under "Staf Welfare or Employee Benefits A/c" too..Now, if you are not sure whether it's 'capital' or 'revenue' nature, then for the time being put it under suspense account, by debiting suspense a/c & crediting cash a/c.

However, if the doubt is regarding specific revenue nature of expenses, then as suggested put it under Miscellaneous or General Expenses A/c.

Hope ur doubt is cleared now...

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