Expenses head

I want to withdraw cash for some specific work from Bank. it is not petty cash. its for flex & other materials purchase expense.i have withdrwan the cash by writing self on cheq.& given the cash to the related emp.

but while posting entry in Aqura,i have passed paymnet voucher as Advance to (emp.name) under Loans & Advance under current assets & credited bank account. when he will be submitting the bill,will pass a J.v. for booking expenses & credit to Advance to (emp.name)

is this correct entry?????

pls guide SOOOOON

Replies (7)

Yes when you are giving advance to the Employee you can book under Advance and subsequently when you receive the details of the Expenses, Expenses can be debited in the Books and Advance credited. Open a Reimbursement Account for such Transactions.

When we give money to some one for specific work, we debit Imprest a/c (name) and credit bank/cash, and when that work is done expense debit and imprest a/c (name) credit, 'imprest a/c' is opened under loans and advances (asset)

got the reply.but if now what i have passed  the entry i.e.Advance to that particular emp.(Loans & Advance-current assets) is that ok?

It is also ok.. No one will punish you for this.. ;) but normally Imprest a/c (name) is used. :)

ok.then i should create Imprest a/c for such exp instead of advances to those emp??smiley

Yup.. If you give money to someone for some expenses or for buying anything, u shuld create imprest a/c

under which accounting head we will book printer cartridge expense.... I know it's nomianl account expense.

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