Employees of a company pay Rs. 60000-70000 in cash in a day for the work of the company Such as Staff Werfare Exp, Traveling Exp, Entertainment exp, they record all the expenses in the company. That the company can pay the expenses in 6 installments of cash on different dates
Examples
Date 1 april
Freight exp a/c Dr. 15000
staff welfare exp a/c Dr. 7000
others exp a/c Dr. 12000
To Ravinder employees (petty cash) 34000
payment
1apr,2apr,3apr,4apr payment done different date because income tax rule according 10000 cash payment in one day
This mentioned method correct or wrong
please suggest
thanks advance
CAclubindia
