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Fastag and Fuel card Accounting

This query is : Resolved 
Quick Summary
Fastag and fuel card expenses paid by GTA on behalf of subcontractors are later adjusted in subcontractor payments. Any unutilized balance should be shown in Balance Sheet as advance or deposit, not as direct expense, since it is recoverable.

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(Querist)
23 November 2021 Sir / Mam

We are GTA (Private Ltd) and do transport services using the Trucks owned by our sub-contractors.
We are paying the expenses such as Toll Charges and Diesel by Our Own Fastag and Fuel Cards on behalf of sub-contractors and adjust the same in the sub-contract payment.

For Example, If I go to account Fastag / Fuel Card Under the head Direct expenses in our book, the Journal entry will be,

While We recharging the Fastag / Fuel Card,

Dr Fastag / Fuel Card 1000
Cr Bank A/c 1000

While Adjusting the same with sub-contract payment,

Dr Subcontractor 900
Cr Fastag / Fuel Card 900

At the end, the closing balance will be Rs.100/- on Fastag / Fuel Card.
As it is not our own expenses,
Kindly please advise us Under which head, the fastag and Fuel card to be accounted for in our books because both have the closing balances at the end of year?

Thanks in adv
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
23 November 2021 The balance amount is not utilized, but remains balance in your card. So. it will be transferred to your BS, under advance/deposits.
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sankar ponnan

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sankar ponnan (Querist)
23 November 2021 Ok sir thank your so much
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
23 November 2021 Most Welcome...
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