All Respected Members,
Please educate me that in which account should these below expense be recorded:
1-Grocery for office purchased from mart (Milk, Tea, Sugar, Biscuits, Phenyle, Harpic etc)
2-Refreshment and Dinner charges to employees due to late sitting.
3-Lunch to employees due to work on off. days.
4-Water Bottles for Office Dispenser.
Thanks in advance for your precious time and efforts to reply this query.
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AA-31-Respective Accounts Name Required To Record Expense Entries
Replies (19)
All these expenses are Office Expenses
Nominal account is the correct answer.
Office expenses under Nominal account as it's an indirect expenses
Overhead concept is unabsorbed Overhead. nominal account is under golden rule of accountancy.
I understand that these expenses will go under indirect expenses and these type of accounts called nominal accounts
but
I want to know the suitable account heads so that I can pass the journal entry accordingly and then transfer into under the indirect expense.
but
I want to know the suitable account heads so that I can pass the journal entry accordingly and then transfer into under the indirect expense.
Go for office expenses
Dear Sourave Sarkar,
Thanks for your reply.
Can you also educate me on following:
How can we record an advance receipt invoice with charging sales tax in accounts ?
For Example:
We have to raise an advance receipt invoice of RS. 100, 000 at rate of 10% sales tax to our clint on 1-8-23; how we will record it in accounts.
Further, please also educate that when advance payment against this invoice will receive on next day; how we will record it in accounts too ?
It is requested to please share journal entries of both cases.
Have you actually received 1,10,000 ? , on 1/8/23 in your company Bank account, and then you issued Advance receipt against advance received please Clerify.
Dear Parsad Nilugal Sir,
we issued 1st advance receipt invoice and after 3 or 4 days we received advance payment cheque from customer.
we issued 1st advance receipt invoice and after 3 or 4 days we received advance payment cheque from customer.
How sales tax has been charged @ 10% ?, when GST is applicable at present for selling goods or providing services.
Dear Nilugal Parsad Sir,
1took 10% ST just for conveniance so that figure can be calculated easily.
My actual purpose is to get knowledge about that how can we record advance invoice and it's payment in accounting.
Advance given is an current asset
Dr. Advance towards rent
Cr. Bank
Then when the time expires and advance is used up
Cr. Rent expense
Dr. Advance towards rent.
This is if the money is significant. We can leave off insignificant amounts like fast tag. Fast tag is an advance paid for toll gate. As long as you know that your business is a going concern, you can say it is a payment. When your company is dissolving and if you paid 1000 without using it the
Dr. Advance for fast tag
Cr. Fast tag payment
and write it as an operating loss
Dr. Write off advance for fast tag
Cr. Advance for fast tag.
Another way is directly write it off from the first entry as
Dr. Fast tag advance write off
Cr. Advance for fast tag
Dear Yasaawi Gomes Sir,
My query is regarding advance receipt rather advance payment.
please refer to read once my query.
My query is regarding advance receipt rather advance payment.
please refer to read once my query.
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