Unsecured loan

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This query is : Resolved

Tojo Thomas (Querist)

09 May 2014 sir, if an employee purchase some stuff for the company and company pay him back for the same later, wil it be treated as a unsecured loan from employee to the company?... Or how can it be treated?

CA Parul Saxena

CA Parul Saxena (Expert)

10 May 2014 no its not an unsecured loan just debit the expenditure and credit the person's name under current liabilities later on at the time of payment simply debit the person's name and credit the cash/bank.

Tojo Thomas

Tojo Thomas (Querist)

10 May 2014 Thank you sir. But my doubt is, if the employee is not a dealer of goods that purchsed, can we consider him as creditor?? Because in this case , employee purchased that goods through online using his credit card, because company doesnt have a credit card..

Tojo Thomas

Tojo Thomas (Querist)

10 May 2014 real situation is- employee purchased google apps for company (for sale to their clients) using his credit card,, because company doesnt have a credit card. And the company repay him back aftr 1 week. So will it be treated as an unsecured loan?

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