Reimbursement Journal Entries?
This query is : Open
Niraj Nirala
(Querist)
20 December 2016
let's take an example "we as a firm paid hotel bills for rs 10000 from bank account on 25.03.16, for petrol 2000 in cash on 10.04.16 some other exp rs 1000 also in cash on 12.04.16. And now raised a bill on 15.04.16 to the client totalling all these rs 13000. It was reimbursed by him on 30.06.16. Please tell me the journal entries.
Ashiwini Ballodia
(Expert)
22 December 2016
As per me the entry will be
Client Dr.
To cash/bank
Niraj Nirala
(Querist)
23 December 2016
i have confusion with all the following routings.:
1. Thru advance:
When exp incurred (on each dates whenever incurred):
Client Dr
To Cash/Bank
when reimbursed:
Cash/Bank
To Client
2. Thru Exp:
When exp incurred (on each dates whenever incurred):
Exp. Dr
To Cash/Bank/Payable Party
When bill raised to client for reimbursement:
Client Dr
To Exp
When amount reimbursed:
Cash/Bank Dr
To Client
3. Thru revenue:
When exp incurred (on each dates whenever incurred):
Exp Dr
To Cash/Bank/Payable party
When Bill raised to client:
Client Dr
To Revenue/P/L (Even reimbursement amount)
To Service tax
When amount reimbursed:
Cash/Bank Dr
To Client
Ashiwini Ballodia
(Expert)
23 December 2016
As per me you should follow the 3rd one i.e. through revenue
Ashiwini Ballodia
(Expert)
23 December 2016
because ST is also chargeable to reimbursement
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