Journal entry for exprenses incurred by Director

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chandan (Querist)
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05 December 2016 Director has incurred expenses like petrol & diesol on his on name and also incurred some other expenses on his own name.should we pass the journal entry like we do in business expenses. eg expenses a/c Dr. To cash/bank or should I debit his capital account?? kindly clarify.

Sandeep Dharar

Sandeep Dharar (Expert)
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05 December 2016 If u r going to reimburse ur director later on then pass the entry as mentioned below:-

Expenses Dr
To Director

And at the time of reimbursement:-

Director Dr
To cash/Bank

Please do not accept director's personal expenses in books of accounts. And if it is on behalf of company then post a simple expense entry.

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chandan

chandan (Querist)
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05 December 2016 OK thanks a lot sir

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