Accounting entries

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i am the accountant of (P) ltd. company and I paid the cash for employees id cards and ribbons what will be the accounting entries .and how i keep track of this transaction. please reply soon
Replies (5)

If paid from company's cash
General or Miscellaneous Expenses A/c Dr. 
      To Cash A/c 
(Being amount paid for employees' ID cards & ribbons)

 

If paid by you on behalf of the company

(On incurring expenditure)

1. General or Miscellaneous Expenses A/c Dr. 
            To "Your Name Imprest" A/c 
    (Being amount incurred for employees' ID cards & ribbons adjusted against imprest)

 

(On receiving payment from the company)

2.  "Your Name Imprest" A/c        Dr.
             To Cash A/c
     (Being amount due on imprest paid)

 

 

Hope ur doubt is cleared now..

Expense can be debited to "Employees Benefit A/c" or "Staff Welfare A/c"

 

Staff Welfare A/c ............ Dr.           XXX

    To Cash                                                      XXX

(For Employees ID Cards and Ribbons)

thank u very much...and what will be the  entries if we dont know the nature of expense and we paid company's cash for exepenses and what will we do when we know about the nature 

Agreed with prateek garg, it can be under "Staf Welfare or Employee Benefits A/c" too..Now, if you are not sure whether it's 'capital' or 'revenue' nature, then for the time being put it under suspense account, by debiting suspense a/c & crediting cash a/c.

However, if the doubt is regarding specific revenue nature of expenses, then as suggested put it under Miscellaneous or General Expenses A/c.

 

Hope ur doubt is cleared now...

Employees ID cards and Ribbons are for Company.

These types of expenses are done for general official purposes.

You can show this expense under Administrative Expenses or General Expense or Employee Welfare Expense.

 

     Entry may be:

Welfare Expense a/c Dr   

    To  Cash a/c

(Being amount paid for ID AND Ribbons)


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