Recently My MD went on Triupati Temple and he donated some in Collecting box and he claimed the same amount from company cash. how treat this and which expenses I should post for this. Pls clarify.
Thanks to all
sathurmugan (Assistant Executive) (65 Points)
06 September 2014Recently My MD went on Triupati Temple and he donated some in Collecting box and he claimed the same amount from company cash. how treat this and which expenses I should post for this. Pls clarify.
Thanks to all
Ravi Reddy
(ca final)
(139 Points)
Replied 06 September 2014
This expense should not be recorded in books,as it is personal expenditure and MD cannot claim such amount from company's cash
Ravi Chandra
(CA FINAL)
(98 Points)
Replied 06 September 2014
Treat that expenses as drawings as there is no proper evidence. There is no problem if it is small amount. If amount little huge, Take represention letter and treat that expenses as sundry expenses. Is that tour is personal or business purpose ?? If personal purpose he cannot claim those expenses.
NAVEESH DHAR
(ADVOCATE- TAXATION ADVISOR)
(427 Points)
Replied 08 September 2014
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