Expenses paid

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Quick Summary

If your company pays expenses where the bill is in your name but should be covered by a vendor, you shouldn't issue a sales bill to the vendor. The correct accounting treatment is to record the expense and create a payable to the vendor. Once the vendor reimburses you, you can then clear this payable by recording the payment received.

nadeem

nadeem (Querist)

23 March 2024 sir
if as a company we paid some exp. and bill issued in the name of company but these exp. should be born by a vendors co. of us so can i make a sales bill for that in the name of vendor co. ?
otherwise suggest the right treatment

RAJA P M

RAJA P M (Expert)

24 March 2024 Account the bill in vendor's ledger and collect payment.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

15 August 2025 Sample Journal Entries
Date Particulars Debit Credit
xx/xx/2024 Expense (e.g., Freight Expense) ₹XX,XXX
To Payable to Vendor (Liability) ₹XX,XXX
Upon Reimbursement Payable to Vendor ₹XX,XXX
To Bank ₹XX,XXX

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