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Accounting head for the expense
Dear Sir/Ma'am
I'm at a client site and have the following query
Under which head of accounting should the following expenses be shown
1) Purchase of forms like F Form etc
2) Purchase of stamp papers
3) Amount paid for new TIN no certificates
4) Some expenses which are paid at various govt offices under the table
My client has charged all the expenses under Misc expense
Replies (2)
No other legal treatment can be given to such type of transactions. being an auditor you must consider the concept of materiality. If these amount arre so material that they can change the view of user after seeing the financial statements then they should not be part of Misc exps, otherwise its ok to show them as Misc Exp
you can claim all the above expenses as 'Legal Fees & Expenses' account, except under the table expenses.
Under the table expenses can be shown as Withdrawal of Capital (Proprietor or Partners) in case of so necessity.
Under the table expenses can be shown as Withdrawal of Capital (Proprietor or Partners) in case of so necessity.
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