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Reimbursement of expenses

Shilpa Deshpande (Accountant) (40 Points)

10 August 2016

Our company is doing one project in which all expenses done by company will be reimbursed by our customer under whose project company is working. The customer is going to pay Salary, engineering design charges and all charges related to the concern customer's project Then how can I book all expenses for the project and reimbursement of expenses and under which group/s in tally. Anyone can answer me ?

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5 Replies

CA BHAVESH GADHAVI (chartered accountant) (53 Points)
Replied 10 August 2016

According to me

1) you can treat all expenses in head indrect expenses just like normal for convenience in data entry then pass journal entry of final balance to reimbursement receivable or other name under the head current assets. so that when amount recieved by client can be directly adjusted in that account.

2) Another treatement is directly create ledger under the head XYZ co. reimbursement a/c & that account under the head current asset and post entry direct in that expenses wise so that ucan adjust amount expense wise

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Kajal Sawant (4 Points)
Replied 31 May 2018

CAN U SHOW WHAT WILL BE THE ACTUALLY ENTRY FOR DIS IN TALLY

RAJESH BOHARA (FINANCE ANALYST) (15 Points)
Replied 26 February 2023

CAN YOU GIVE WITH EXAMPLE

MAYUR JAIN (Student) (2 Points)
Replied 01 March 2023

I have received a electric vehicle purchase reimbursement from my company and they have deducted TDS on that. Shall i have to take this reimbursement amount in my total income while filing the ITR