when we are paying expense is it mandatory to book on person name after expense out or can we directly making payment in respective expense head
also explain its statutory implication
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accounting
Replies (1)
It depends on the method of accounting followed.
In cash basis, only payment entry is passed.
In accrual basis, normally two entries are passed - for due and for payment, if both events occur on different dates. Else, you can pass only payment entry if paid on due date.
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