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Very very urgent accounting query

ca in practice


our co. had made a payment of rs 5.50 lacs on behalf  of our client ,as a membership fees of golf club, how to deal with this entry and under wht head, any decided case law 


Total thanks : 1 times

 
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Corporate Accounts


Dear Manik,

 

Accounting entry does depends on the terms agreed in the contract with your client like whether it is reimbursable or not.

Also depending upon the business nature of your company and frequency of such transactions it can take a suitable place in your chart of accounts. Information provided by you is not sufficient  to comment upon.

It can be taken in to Business promotion expenses presuming your company is paying it for the services to be utilized by your client.

Thanks 

" A learner"

 
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ca in practice


ours is construction co, and we had paid the sum on belalf of  the client ( his personal expenditure) and the same is not recoverable from the client.

 
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Yes as rightly stated by our friend it can be taken as Business Promotion  Expenses,but for the purpose of IT the business expediency is to be proved.

kkm

 
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Corporate Accounts


Originally posted by : Kolluru Krishna Murty

Yes as rightly stated by our friend it can be taken as Business Promotion  Expenses,but for the purpose of IT the business expediency is to be proved.

kkm

Agree with the same as suggested by Mr. Krishna

 
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Hi Every One.....

Because of this type of situations we can take signature in stamp paper which includes all type of expenses which we can take most in our favour and avoid penal action taken by IT i.e we have proof of signature on stamp paper....

 

Thanks...............

 
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