Journal voucher(JV) & Bank payment voucher(BPV)
This query is : Resolved
20 October 2010
We are very often giving advance to our employees. At the time of settlement, we pass journal voucher for book adjustment. Like if an amount of Rs. 5000 has been given as advance and he has incurred expenditure of Rs.5500. JV is passed accordingly debiting the expenditure head for Rs. 5500 and crediting staff advance for Rs. 5000 and crediting bank account for Rs. 500. A cheque is acordingly drawn in favour of employee for Rs. 500.
In this connection my query is:
(i)Is is proper to make payment through JV?
(ii)Should we make a JV for staff adjustment and a Bank Payment voucher for payment of Rs. 500?
(iii)If we continue to follow the existing will there be any audit objection?.
THANKS IN ADVANCE!
In this connection my query is:
(i)Is is proper to make payment through JV?
(ii)Should we make a JV for staff adjustment and a Bank Payment voucher for payment of Rs. 500?
(iii)If we continue to follow the existing will there be any audit objection?.
THANKS IN ADVANCE!
22 October 2010
Your (ii) is correct always creat a liability and make the payment , Donot pass any JV in bank a/c.
Auditor may advise you to follow the above, but not qualify the report.
Auditor may advise you to follow the above, but not qualify the report.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is any professional CA is here please reply
- Reopen of assessment proceeding
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Rental income gst and it purpose
- Fixe term employment
- Gift Received from nonblood relative
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Section 50-fixed asset-->building ceases to exist
- EPF FULL & FINAL RULES IN 2026
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
