There are some office boys in our office who are from outsourced agency , ie not in our rolls. We pay directly to the agency, who employ them, on receipt of their invoice and debit to office maintenance or security charges etc.
Now management decides to pay the boys individually some sort of bonus/incentive in this year end.
Where should the expense be debited. Office maintenance/security charges or incentive / exgratia/bonus account.
Regards,
| Originally posted by : Dipjyoti Majumdar | ||
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There are some office boys in our office who are from outsourced agency , ie not in our rolls. We pay directly to the agency, who employ them, on receipt of their invoice and debit to office maintenance or security charges etc. Now management decides to pay the boys individually some sort of bonus/incentive in this year end. Where should the expense be debited. Office maintenance/security charges or incentive / exgratia/bonus account. Regards, |
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In this particluar case incentive payable a/c should be debited.with supporting narration.
hiii..
As you said that these boys are not on your pay roll and you paying all charges to the security agency directly. it means they are raising their bill for the security and on basis of that bill you are paying the amount..
So there is no role of that boys in your company, so how will you justify the payment of bonus amount to that office boys and what will be the supporting for that expenses..
If the amount of incentive is not heavy in amount, so just adjust this amount in staff expenses and if the amount is some big, then you have to pay directly this amount to security agency and this security agency will give you a bill for that and pay that amount them directly..
CAclubindia
