Entries in B/S for expenses done by director on behalf of the company

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 be  under Current liability in Balance sheet  

  On 31 st  march   same  will be  remain  payable  in current liability  side  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 next  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 be  under Current liability in Balance sheet     On 31 st  march   same  will be  remain  payable  in current liability  side  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 next  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.