How to account
If company paying Director's cook and driver salary by cheque.
Cook and driver are not in payroll salary sheet
Thnaks
Sanjay S
(Chartered Accountant)
(1375 Points)
Replied 11 March 2017
You could pass an entry as follows:
Staff Welfare Expenses A/c Dr. - (paymt to cook)
Travelling Expense A/c Dr. (driver's payments)
To Bank A/c
However, if the company has not passed any resolutions, authorising the company to bear the director cook's and Driver's salary, then this could suffer disallowance under the Income Tax Act, 1961. Hence, If there is no such resolution, then you could debit the Director's Current A/c and credit the Bank A/c.
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