Expenses by manager

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chandan (Querist)
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30 November 2016 Manager was given Rs. 20000/- in cash by our company.He incurred expenses Rs. 21500.Rs. 1500 will be reimbursed to the manager the breakup for 21500/- is as follows. Draw expenses = Rs. 18000/- Fuel expenses =. Rs. 2500 Food =. Rs. 1000 He lost the bill for Rs. 1000 which was incurred for food.Rs. 1500 is to be reimbursed to him How to make journal entries for these transactions.Kindly help

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Sandeep Dharar

Sandeep Dharar (Expert)
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30 November 2016 U can just pass a payment entry. I'll suggest not to bother regarding the bill of 1000/- until u receive any query regarding that from Department during assessment.

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chandan

chandan (Querist)
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30 November 2016 Thanx a lot sir.can u tell me what entries will be passed.

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Sandeep Dharar

Sandeep Dharar (Expert)
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01 December 2016 At the time of advance payment:-

Director(name of director to which adv. given) Dr
To bank/cash

At the time of receipt of bills pass the expense journal:-

Expenses(different ledgers as per bills) Dr
To Director.

And the same payment entry to director at the time of balance payment.

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chandan

chandan (Querist)
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01 December 2016 M I Right Here.kindly tell me sir At the time of withdrawal of cash for expenses Cash A/C. 20000 Bank A/c. 20000 at the time cash is given to manager to meet expenses. Manager A/c. 20000 to cash A/c. 20000 At the time when manager raises bills to account department Expenses A/c. 21500 To Manager. A/c. 21500 Payment to Manager for meeting expenses upto RS. 1500 from his own pocket Manager A/c 1500 To cash/bank. 1500 kindly confirm.

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Sandeep Dharar

Sandeep Dharar (Expert)
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02 December 2016 yes, better if u mention details in the narration.

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chandan

chandan (Querist)
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02 December 2016 OK and thank you so much sir

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