Krishna seva das (TAX CONSULTANT) (1070 Points)
19 September 2014COMPANY EXPENSES PAID VIA CREDIT CARD OF DIRECTOR .
HOW ACCOUNTING SHOULD BE DONE AND IS IT ALLOWED BY COMPANIES ACT
Anubhav
(Chartered Accountant)
(429 Points)
Replied 20 September 2014
Consider them as reimbursable expenses of director.
Pay to directors account from your account.
Otherwise this type of transaction are personal in nature and not allowable in both IT as well as companies act.
For any further query PM or main us.
anubhavjain @ ajhco.in
AJH & CO
Chartered Accountants
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 14 October 2014
Its better to open a Credit Card Payable a/c (with Card no:) since he may be usuing more than one card.
Debit expensewise viz., Travelling,entertainment,business promotion etc.,
Credit Credit Card Payable a/c (with Card No:)
At the time of makeing Payemnt Debit Credit Card Payable & Cr Bank
In case if any personal expenses incurred & paid by the Company - Debit the amount to his personal a/c
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