Cash payment more than rs 20000

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2014 In a Pvt.Ltd company there is a purchase of mobile in cash and it is gifted to its client
The entry passed
Mobile phone(asset) dr. 54,000
To cash. Cr. 54,000

Pls tell me what is right effect of it and if it shown as business promotion exp. Then the whole amount is disallowed
So pls give ur opinion

Rupesh Jain

Rupesh Jain (Expert)
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09 April 2014 yes whole amount will disallow .

you can purchase this through imprest a/c
in which you can give below Rs. 20000/- in three date after that you can book entry.

or you can buy through cheque.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2014 And it is gifted so can we take as an asset???

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