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Reimbursement Journal Entries?


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.

As per me the entry will be Client Dr. To cash/bank

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

As per me you should follow the 3rd one i.e. through revenue

because ST is also chargeable to reimbursement



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