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Company expenses paid via credit card of director .

Accounting Entries 4575 views 2 replies

COMPANY EXPENSES PAID VIA CREDIT CARD OF DIRECTOR .
HOW ACCOUNTING SHOULD BE DONE AND IS IT ALLOWED BY COMPANIES ACT

Replies (2)

Consider them as reimbursable expenses of director.

Pay to directors account from your account.

Otherwise this type of transaction are personal in nature and not allowable in both IT as well as companies act.

 

For any further query PM or main us.

anubhavjain @ ajhco.in

AJH & CO

Chartered Accountants

Its better to open a Credit Card Payable a/c (with Card no:) since he may be usuing more than one card.

Debit expensewise viz., Travelling,entertainment,business promotion etc.,

Credit Credit Card Payable a/c (with Card No:)

At the time of makeing Payemnt Debit Credit Card Payable & Cr Bank

In case if any personal expenses incurred & paid by the Company - Debit the amount to his personal a/c


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