Accounts dept has to issue self cheque to other departments for petty cash expenses or Imprest.
Is there any rule that only self cheque has to be issued?
Can the payment made to employees salary account ?
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Mode of payment for petty cash
Replies (14)
Quick Summary
Wake up and put clarity in your question.
Open your eyes heroine..
Query is already written in detailed.
Can the petty cash be directly transferred to employees salary account ?
Query is already written in detailed.
Can the petty cash be directly transferred to employees salary account ?
I don't know if it's allowed or forbidden by any rule.
But I do know in my company we have been doing this for many years without a problem.
Is there any limit ?
If salary per month is 1lac , can petty cash per month 1lac per month be paid into salary account ?
If salary per month is 1lac , can petty cash per month 1lac per month be paid into salary account ?
Petty cash has to be in company name.cash ledger has to be maintained.proper accounting has to be done
If a company has various departments then we have to give to petty cash to each dept on monthly or whenever required.
Both possible
Can the above petty cash be paid to employees account directly..They withdraw or they may do online payments for petty cash
If you do this it will be income which can't be called as "petty cash"
Eswara eshwara don't write your own Reddy laws of income tax!
Eswara eshwara don't write your own Reddy laws of income tax!
That's why heroine , I have asked the query
You come up with such queries that show your mind is fogged with Sambhar fumes.Just eat less Sambhar
There are practical issues which mandate the petty cash to be drawn through account payee cheque..
If a cash voucher is missed then it's O m Namah Shivaya.
So instead of giving self cheque , we are giving account payee cheque and they withdraw cash and keep in the respective dept petty cash
We instructed depts to deposit in their alternative bank account and withdraw cash for petty cash
If a cash voucher is missed then it's O m Namah Shivaya.
So instead of giving self cheque , we are giving account payee cheque and they withdraw cash and keep in the respective dept petty cash
We instructed depts to deposit in their alternative bank account and withdraw cash for petty cash
It is just have strong internal controls.
Nothing wrong in this .
If it is credited to salary account then only there will be problem for income tax purposes.
But if petty cash is sent to alternative bank account other than salary bank account then there won't be any issue.
Hope you understand practical issues ..
Dept have bank account so transfer RTGS NEFT .They can withdraw money using their self cheque and keep in petty cash box.They must have cash ledger and cash voucher files . whenever any petty cash TXN done they must update both then give cash.
Learn accounting .But grasping it requires unfogged mind. Just eat less Sambhar.
Learn accounting .But grasping it requires unfogged mind. Just eat less Sambhar.
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