Accounting Head

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Discussion suggests classifying guest travel as separate expense or business promotion, while staff travel goes under staff expenses. Tea and lunch for employees may be treated as staff welfare or function based expenses depending on nature.

PRATIK KAYAL

PRATIK KAYAL (Querist)

30 April 2011 Dear All

I want to know the appropriate accounting head of following expenses:

1) Travelling and Lodging expenses of Company's guests beared by company.

2) We are having a regular expenses of tea in our factory which is being made inside our factory, but many a times when a office staff goes out on official work , they charge lunch expenses, so what should be the appropriate accounting head of both tea and lunch.

Thanking you

Surendra Singh Chouhan

Surendra Singh Chouhan (Expert)

30 April 2011 1. Travelling and lodging exp for staff should be accounted in the head "Travelling and Lodging expenses - Staff"
2. Travelling and lodging exp for guest should be accounted in the head "Travelling and lodging expenses - Others"
3. Tea and lunch expeses for staff should be accounted in the head "Staff Welfare Expenses'...bcz place is irrelevant.

Vivek Raju P

Vivek Raju P (Expert)

30 April 2011 1. Business promotion expenses
2. Depends on the function and materiality if these are sales people it goes to sales expenses, marketing or procurement based on the function. General allocation may not be good, but dont think it is staff welfare,

Message likes : 1 times

PRATIK KAYAL

PRATIK KAYAL (Querist)

01 May 2011 Thank u Sir

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