05 December 2016
Manager sent to company's meetings. there he stays for 10 days.he incurred expenses like breakfast, lunch,dinner,petrol & diesel,stay in hotel and many other expenses.we received all bills from him.someone suggest me to pass all the entries in tour and travelling. is he right or I have to debit respective accounts
like in case he pays for petrol
Petrol & diesel Dr
cash Cr
Kindly clarify
06 December 2016
Nomenclature of ledger does not matter, disclosure is material , if your annual expense is more than 1% of revenue or Rs.1 lacs which ever is higher, you need to disclose it separately as per schedule 3 of companies act, 2013.
you need to check your expenses on the same line as mentioned above and need to make ledges accordingly.
CAclubindia
