23-How to Record Luch for Guest

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Accounts Officer
563 Points Posted on 28 June 2023

Hi All Respected Members,

Please educate me that if we arrange lunch for our client's representative in office, in which account it will be recorded? Please also share journal entry. 

Thanks in advance for your precious time and efforts to reply this query.

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On 28 June 2023 at 23:16 Report
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Quick Summary
This discussion clarifies how to account for client lunches held at the office. The consensus is that such expenses should be recorded as 'Business Promotion Expenses'. If a supplier invoice is issued, the journal entry involves debiting 'Business Promotion Expenses' and crediting the supplier. Payment is then recorded by debiting the supplier and crediting the bank. If applicable, input CGST and input SGST should also be debited.

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GST Practitioner & Accounts
8990 Points Posted on 29 June 2023
If lunch was for business meeting and Sales pramotion , then you Can record , it as business promotion expenses , also if Lunch supplier has raised Invoice then book such expenses .

Business promotion expenses A/c Dr
To Supplier A/c Cr
( lunch expenses payable )

Supplier A/c Dr
To Bank. A/c Cr
( payment entry)

If GST applicable then, debit input CGST and input SGST in first entry
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On 29 June 2023 at 07:55
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"Do the Right Thing...!!!"
77792 Points Posted on 29 June 2023
Yes, I agreed with Mr Prasad Nilugal.

We can account/Book the said Lunch (or any other food, drinks & refreshments) expenses as BUSINESS PROMOTION EXPENSES.

BUSINESS PROMOTION A/C - XXXX
TO, BANK/CASH A/C - XXXX.
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On 29 June 2023 at 08:27
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Finance
3326 Points Posted on 29 June 2023

If it's casual. Book it as perks

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On 29 June 2023 at 08:29
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Profession
19976 Points Posted on 29 June 2023
All these are business promotional expenses.
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On 29 June 2023 at 15:05
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Accounts Officer
563 Points Posted on 29 June 2023

Thanks Prasad Nilugal Sir for detailed reply.

Also thanks to Raja P M Sir, Yasaawi Gomes and Sabyasachi Mukherjee. 

Reply
On 29 June 2023 at 16:25
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Accounts Officer
563 Points Posted on 29 June 2023

Thanks Prasad Nilugal Sir for detailed reply.

Also thanks to Raja P M Sir, Yasaawi Gomes and Sabyasachi Mukherjee. 

Reply
On 29 June 2023 at 16:25
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Accounts Officer
563 Points Posted on 29 June 2023

Thanks Prasad Nilugal Sir for detailed reply.

Also thanks to Raja P M Sir, Yasaawi Gomes and Sabyasachi Mukherjee. 

Reply
On 29 June 2023 at 16:25
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Accounts Officer
563 Points Posted on 29 June 2023

Thanks Prasad Nilugal Sir for detailed reply.

Also thanks to Raja P M Sir, Yasaawi Gomes and Sabyasachi Mukherjee. 

Reply
On 29 June 2023 at 16:25
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Accounts Officer
563 Points Posted on 29 June 2023

Thanks Prasad Nilugal Sir for detailed reply.

Also thanks to Raja P M Sir, Yasaawi Gomes and Sabyasachi Mukherjee. 

Reply
On 29 June 2023 at 16:25

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