Hi
to incur petrol expenses we refill BPCL petro card online for which we show that cash for it recd fm Proprietor.We show it under unsecured loan(Liabilities).At the time of refilling petro card,entry has been passed as BPCL petro card Dr.to Bank
is it right?
Also want to know how to book the expenses against this account?
pls guide
when you refill the petrol Debit Petrol A/c and credit the Petro Card Account.
while making the payment debit Petro Card A/c and credit Bank A/c
petrol account under indirect expenses & petro card account under unsecured loans?
yes for petrol exp, but Petro Card under Current liab lities. It's not a loan that is taken but you are incurring an liability that needs to be paid each month.
Petro Card Account will be Created under Current Assets, Its not a Liability..... While Using Petro Card for Petrol Then Dr. HSD/ Petrol/ Vehicle Maintenace and Credit the Petro Card Ac
but to refill the petro card propritor gives the money.so we r treating it as loan taken fm him.i.e. unsecurecd loan.isnt it right?
Why proprietor is requried to give money from his pocket.
Is he not making the payment from his current account used for the purpose of carrying on his business.
hello
why dont you show money received from ur proprietor as advance received for expenses grouping under Loans & advancess of current asset master ledger. It is just as simple as
Advance againest expenses/petrol expenses a/c Dr
To bank a/c
when expenditure is being booked
Petrol expenses a/c Dr
To advance againest expenses/petrol expenses
I conclude
Regards
Hari
CAclubindia
