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Journal entry

sunil saini (accountant) (39 Points)

18 January 2021

expense paid by debit card in pvt ltd co. how will be entered

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14 Replies

prasad Nilugal (3909 Points)
Replied 18 January 2021

Expenses A/c Dr
To Bank A/c Cr
( Being expenses paid through Debit card of company ).

sunil saini (accountant) (39 Points)
Replied 18 January 2021

BUT DEBIT CARD IS PERSONAL, NOT IN COMPANY , & AMOUNT NOT DEDUCT IN BANK ACCOUNT

prasad Nilugal (3909 Points)
Replied 18 January 2021

Ok, for example as per your query Supose Mr A paid company expense through his Debit card then entry in the books of company will be

Expense A/c Dr
To Mr A A/c Cr
( Being expense paid through Debit card of Mr A)

when company will pay back to MrA ,then pass entry

Mr A A/c Dr
Bank A/c Cr
( expenses paid by A , reemburse ) .

1 Like

prasad Nilugal ( GST Practitioner & Accounts ) (14151 Points)
Replied 18 January 2021

Mr A A/c will be under Current liability , in Balance Sheet

1 Like

bhavesh makwana (12 Points)
Replied 18 January 2021

Drawing a/c dr
to bank
(being person exp from debit card )

Krishna Chaudhary (Accountant) (4531 Points)
Replied 19 January 2021

Expense are always debited

3 Like

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 19 January 2021

EXPENSE A/C. DR.
TO PARTY A/C

prasad Nilugal (3909 Points)
Replied 19 January 2021

In my example above MR A is party only , as Gandhi madam replied .

prasad Nilugal ( GST Practitioner & Accounts ) (14151 Points)
Replied 19 January 2021

@ Bhavesh Makawana .

Drawing means withdrawal from Business ., here in this case Party has given money form his pocket to Business .

sunil saini (accountant) (39 Points)
Replied 19 January 2021

Originally posted by : prasad Nilugal

Mr A A/c will be under Current liability , in Balance Sheet

But when I am not paid to Mr A. A/C till year end , what entry will be passed in financial year end for balance nil.

and cash payment is possible to mr. A

prasad Nilugal ( GST Practitioner & Accounts ) (14151 Points)
Replied 19 January 2021

Unless you pay to Mr A balance will not be NiL , Balance at the year end ( on 31st March ) Payable to Mr A will be carried forward to Next year ( closing balance of this year will be Oping Balance in the next year ) .