AA-11 Reimbursement to Employee on Behalf of Another Employee

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Respected Members,

Please educate me on following:

If a employee purchased a something (mobile, USB etc) for another employee as per instruction of management and Management says that this amount will be reimburse to him after deducting from 1st one employee salary. What would be accounting treatment of this scenario?

For example:

Mr. B Purchased mobile for Mr. A and handled over it to Mr. A.

At the time of payment of salary, company deducted mobile value from Mr. A salary and pay him remaining salary amount.

On same day, company reimbursed mobile value to Mr B.

Thanks in advance for your precious time and efforts to reply of this qurey.
Replies (3)
Example
Mobile for Employee Rs.10000 Dr.
Mr.B Rs.10000 Cr.

Salary Ac. Rs. 12000 Dr.
Mobile for Employee Rs. 10000 Cr.
Mr. A Rs. 2000 Cr
Dear Sandeep Jain,

Thanks for your reply.

You above mentioned transactions are not cleared to me. please mention what would be respective ledger of journal entries specially 1st entry. Further, I found that you did not mention payment entry of Mr. B.

please review.
Above entry is correct regarding payment
Mr.B Dr Rs.10000
Bank Cr. Rs.10000


CCI Pro

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