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Narendra Kumar Mopidevi (Querist)

03 April 2014 if company gives any party to his employees means if company offer corporate lunch for employees, then how to show the total expenditure incurred those type of events as per company act.what is the entry for those type of transactions.

Thanks in Advance

Rupesh Jain

Rupesh Jain (Expert)

03 April 2014 exp to be book in staff welfare exp.

Message likes : 1 times

Narendra Kumar Mopidevi

Narendra Kumar Mopidevi (Querist)

04 April 2014 Thanks you rupesh sir.

Sandeep Dharar

Sandeep Dharar (Expert)

04 April 2014 Narendra if it is a one time expense then book it in Staff Welfare as under:-

Staff Welfare Dr
To Bank/Cash

And if it is recurring in nature then it should b debited to staff salary..

Narendra Kumar Mopidevi

Narendra Kumar Mopidevi (Querist)

04 April 2014 if we are spending the amount on specific employee then its the amount of that expenditure add to his salary. if we are spending the amount on total employees then its comes under staff welfare expenses. is it corret sir?

Sandeep Dharar

Sandeep Dharar (Expert)

04 April 2014 No it is not necessary. Suppose ur company is providing u a sum of money say Rs. 100/- on monthly basis, then it will form part of ur salary. It is not compulsory that other employees r not getting that amount, but suppose in overtime duty the company expends fooding expenses for the staffs or a single staff then it is staff welfare.

Narendra Kumar Mopidevi

Narendra Kumar Mopidevi (Querist)

04 April 2014 Thanks you very much Sandeep Sir,

Sandeep Dharar

Sandeep Dharar (Expert)

04 April 2014 u r welcome dear

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