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Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2013 How to treat withdrawl of money through atm machines as offical expenses in books.( As we know withdrawl of money through atm mostly for personal purpose ) ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

30 July 2013 then u need to have sufficient documentary evidence showing it as used for official exp.

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Ganeshbabu K

Ganeshbabu K (Expert)

01 August 2013 1)increase petty cash balance by withdrawing cash from bank

2)try to keep expenditure entries like business promotion,travelling expenses(if there is any personal travel),Staff welfare if possible,

3)Pass entries like petty advance to match physical cash and cash as per tally

4)and your advance account can be closed with your ability to make fake expenditure

Thanks & regards
ganesh babu k

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

02 August 2013 The moment you withdraw the money from ATM it is cash in hand and your cash in hand increases. Now, if you have withdrawn the money for incurring expenses then you can make the payment against voucher but if you are making the payment against liability already incurred by staff then you have to book the liability and then make the make to the staff but you should be careful that you are not violating the provisions of Section 40A(3).

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