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riddhi (Querist)
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04 February 2015 The director had gone for business visit , out of town so he reimbursed the hotel expense from his own funds so do I need to pass 1 JV for Stay expense
To Director A/C

another JV for Director
To Cash A/c

Sandeep Dharar

Sandeep Dharar (Expert)
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04 February 2015 I suggest to treat it as simple reimbursement.

Coz its expenses of the Company n, the Director is not responsible to pay it personally.

Hence, record it as Business Promotion Expenses in the books of the Company

riddhi

riddhi (Querist)
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04 February 2015 ok but if i reimburse then i have to make the reimbursement entry so do i need to pass 1 more entry for business promotion to director?
And then show it as reimbursed so it will get nullified

Sandeep Dharar

Sandeep Dharar (Expert)
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04 February 2015 Riddhi, first pass the entry in Imprest account, and book it into the account of Director.

Imprest(Director) A/c Dr
To Cash

and after that pass the entry as

Business promotion Dr.
To Imprest(Director)

In this way Imprest A/c will b nullified and the entry will b recorded in the books of the company as expenses.

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