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Journal entry for the expense reimbursement

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This query is : Resolved

Quick Summary

For expense reimbursement, debit expense account and credit cash or bank at payment. Alternatively, first record expense payable to employee, then clear by debiting employee account and crediting cash or bank on reimbursement.

Riyaz khan

Riyaz khan (Querist)

17 March 2012 Respected sir/Madam,

One of my employee paid leagal expense behalf of the company..& I have to reimburse it to him..what and all journal entries i should pass.can any one tell me...

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

17 March 2012 At the time of reimbursement:-
Legal Expenses a/c Dr
To Cash/Bank a/c
(Being Legal expenses reimbursed to the Mr.X employee of the company which are met by him on behalf of the company)
(Or)

Second Choice:

At the time of expenses met by him:-
1) Legal Expenses a/c Dr
To Mr.X a/c
(Being Legal Expenses related to the company paid by the Mr.X which has to be reimburse)
At the time of Reimbursement of amount:-
2) Mr.X a/c
To Cash/Bank a/c
(Being reimbursement expenses payable to Mr.X now paid)
OM SAI SRI SAI JAI JAI SAI

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