Food expense to repairs consultant

Hi

 

I know this is very basic doubt but i am confused about it

 

Food expenses incurred for supplying food to consultant visiting for Repair and Maintanance of Machinery

 

Now where should this expense be booked?

 

1. Repairs and Maintanance

2. Entertainment expenses

 

I was of opinion that it should have been booked to entertainment expenses.. but now i feel option 1 is right as the expense was incurred with relation to repairs, so the expense is part of repairs expense incurred(same logic as carriage inward eventhough is transportation cost is taken as material cost as it is related to making the material available for production)

Replies (2)

hello Victor,

Your question is really very basic...See if there was already a contract between u and repairer that the all expenses incured will be included in the consultancy fee then it is obvoius that u should book such expense under repairs & maintenance. Otherwise you should clssify it under Miscellaneous or Office Expenses.

It is better you take it as conveyance expenses

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