Advance given by Private Limited company
This query is : Resolved
29 May 2021
Dear Sir,
I am having an excess balance of Rs. 3 lacs in my bank account of my Pvt Ltd company which came from my previous Income tax refunds. Can I give this amount as an Advance to another person (who is not a Director in the comany) instead of showing it as an expense.
If I show this amount as an expense the company will incur loss.
Regards,
Divyesh Jain
I am having an excess balance of Rs. 3 lacs in my bank account of my Pvt Ltd company which came from my previous Income tax refunds. Can I give this amount as an Advance to another person (who is not a Director in the comany) instead of showing it as an expense.
If I show this amount as an expense the company will incur loss.
Regards,
Divyesh Jain
29 May 2021
Advance itself cannot be shown as expense. You may give advance to any person if the transaction is related to business.
In order to show it as an expense, you need to get the invoice from the person to whom advance has been paid.
In order to show it as an expense, you need to get the invoice from the person to whom advance has been paid.
29 May 2021
Nature of my business is Salary reimbursement and Salary paid. Can i show it as Advance paid to XYZ as a salary advance?
29 May 2021
If XYZ is an employee and salary is paid to XYZ, then it is a salary expense.
Yes, advance paid to an employee is a salary advance. It is not an expense and the same needs to be deducted from future salary.
Yes, advance paid to an employee is a salary advance. It is not an expense and the same needs to be deducted from future salary.
29 May 2021
Ok, Thanks for your reply
05 June 2021
why you need to show advance dummy entry if company got refund let it be there in bank there is no clarity refund is pvt ltd company or your individual refund ? if it is individual refund why you want to show advance to salary today or tomorrow advance need to be adjusted for salary don't pass unnecessary entry . for showing advance or payment you need to transfer money from bank account.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- ITR returnFY25-26
- ITR selection for salaries and capital gain less than L
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR 2 Short Term gain & Long term gain
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR 1: Details for showing Exempt Income
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
