This discussion clarifies the accounting treatment for fuel expenses incurred by a company director that are paid at a later date. The correct journal entry involves debiting 'Fuel Expenses' (an indirect expense) and crediting the 'Director's Account'. It's recommended to use a sub-ledger under 'Fuel Expenses' for 'Directors' rather than creating a separate main ledger for directors.
05 June 2023
fuel expense bill submitted by company director but pay later what is the journal entry and ledger create under which head : fuel exp. (indirect exp.) other ledger