if your company is using personal Credit card of your company’s directors and partner’s than how are you booking such expenses in your company Account ?
if your company is using personal Credit card of your company’s directors and partner’s than how are you booking such expenses in your company Account ?
the entries has to bokked as the expenses paid by the directors
Company expenses paid by the credit card of a director are to be recorded as companie's expenses in the books of the company.
The director will be reimbursed for the same.
Directors would be treated as Non-Trade Creditors for the Company and the Payment made through Credit Card will be expensed in the Books of the Company.
For these type of transactions, the journal entry will be as follows:
Office Expenses A/C Dr.......
Owner's Capital A/C to Cr......
Owner increases his capital in business by paying expenses from his personal credit card.
Hi, whatever purchases happen, invoice should be get in the name of Company only. Then, we can book the invoice in Company's expense account and then re-imburse the amount to the Director.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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