Accounting Entries for expenses done by director on behalf of the company & later reimbursed

1) purchase  Expense  booking  entry 

     purchase   A/c             Dr 

     To   Trade creditors     A/c      Cr 

(  Booking  entry of purchase ) 

Expense paid  by the Director on behalf  of company 

 Trade  Creditors      A/c    Dr 

 To Director              A/c    Cr

(  Company purchase  expense paid  by  Director )   

Director  A/c  will under current liability in Balance sheet 

On 31 st  march   same  will be  remain  payable  in current liability in the name  of Director in  balance sheet 

on same day  will  transfer  to  provisions  and make  provision 

 Director         A/c              Dr 

 Expense payable to  Director   A/c    Cr  

(  Expense payable to Director  transfer form current liability  to provisions in liability  of  Balance sheet . )   

next  year on 1 st April   show as oping credit  balance Expense payable to  Director A/c 

 when you pay  in the nest  year  pass entry 

 Expense  payable  to Directors   A/c     Dr 

To Bank    a/c      Cr 

( Last  year  expense paid by Director   reimbursed ) 

Originally posted by : prasad Nilugal
	1) purchase  Expense  booking  entry       purchase   A/c             Dr       To   Trade creditors     A/c      Cr  (  Booking  entry of purchase )    Expense paid  by the Director on behalf  of company   Trade  Creditors      A/c    Dr   To Director              A/c    Cr (  Company purchase  expense paid  by  Director )    Director  A/c  will under current liability in Balance sheet    On 31 st  march   same  will be  remain  payable  in current liability in the name  of Director in  balance sheet  on same day  will  transfer  to  provisions  and make  provision   Director         A/c              Dr   Expense payable to  Director   A/c    Cr   (  Expense payable to Director  transfer form current liability  to provisions in liability  of  Balance sheet . )      next  year on 1 st April   show as oping credit  balance Expense payable to  Director A/c   when you pay  in the nest  year  pass entry   Expense  payable  to Directors   A/c     Dr  To Bank    a/c      Cr  ( Last  year  expense paid by Director   reimbursed )

Thank you for sharing the information.

well  come 

Which Entry need to be pass in Directors A/c

My name is ABC. If I am the Director of a  Pvt Ltd company, and the company's present total cash and bank balance is Rs.0, and I made a purchase for Rs.1,00,000 on 01/01/2024 on behalf of the company (bill issued in company's name) and paid from my personal bank account.

Question: Can I create a petty cash account in my name as "ABC Petty cash" under "Cash in Hand" head, then transfer 1 lakh rupee from another account created as "ABC Loan" created under Current liabilities in Balance sheet, then spend the amount to the vendor as a Payment voucher?

If the Director is also a salary person then we need to create a diffrent head or a pass the entry in the same head.