Employees of a company pay Rs. 60000-70000 in cash in a day for the work of the company Such as Staff Welfare 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 a/c Dr. 15000/-
staff weffare a/c Dr.10000/-
others exp a/c Dr. 7000/-
To Ravi employee (petty cash) a/c 32000/-
payment
1apr,2apr,3apr,4apr payment in cash adjusted Ravi employee petty cash a/c because income tax according cash expenses one day limit 10000 rs
this is a correct way or wrong
kindly suggested
Thanks experts
CAclubindia
