LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Urgent advice required

Kumar Gaurav (Going...to be C.A soon...) (1624 Points)

26 July 2013

Dear All

1) We are reimbursing Mobile bills to our employees on monthly basis say Rs. 100/- Per month each employee

2) Bills & connections are in the name of "EMPLOYEES" only.

Please let me know how to record the entry in our Books.?

Thanks

Gaurav

Reply
Follow
Share

12 Replies

Gowtham (Student CA IPC / IPCC) (119 Points)
Replied 26 July 2013

Staff Welfare A/c

2 Like

Kumar Gaurav (Going...to be C.A soon...) (1624 Points)
Replied 26 July 2013

Thanks

R u sure?

Rajesh (student) (193 Points)
Replied 26 July 2013

Dear Kumar,

It shouldnot be Staff Welfare.

It must be Telephone Charges ( under Indirect Expenses).

This expenses no way connectin with staff welfare.

Thanks for your understanding.

Gowtham (Student CA IPC / IPCC) (119 Points)
Replied 26 July 2013

Bills are not in company name its just like an reimbursements for safer side book as staff welfare

Ki$hor B (Training & Advisory) (3015 Points)
Replied 26 July 2013

Is such reimbursement a component of salary?

Mukesh Kumar Singh (CA-FINAL) (4094 Points)
Replied 26 July 2013

i think staff wefare a/c is absolutely true answer. You can go with it undoubtedly

Kumar Gaurav (Going...to be C.A soon...) (1624 Points)
Replied 27 July 2013

If i booked the expesnse under staff welfare a/c then what would be the supporting voucher for us as connections & bills are in the name of EMPLOYEEs individuals.

Pl. clarify

Neerav Karia (Article Assistant ) (68 Points)
Replied 28 July 2013

I would say, go with telephone expense account. Keep the original bills and vouchers of payment as evidence.

CA SONIYA AGARWAL (self practice) (3005 Points)
Replied 28 July 2013

a ledger name reimbursements shall be opened and it shall be grouped under salary and wages , as it is directly related to employees , it can be grouped under telephone expenses , as conncetions are in the name of employee it is just a sort of reimbursement

Alaknanda (STUDENT) (31 Points)
Replied 28 July 2013

I think it must be Telephone Expense A /C

Kundan (ACCOUNTANT) (58 Points)
Replied 29 July 2013

Dear Karan

we have also same issue we are booking as Telephone Expenses and keep bill record in the file.

Ashwini. K (Partner in KGR&CO) (96 Points)
Replied 31 July 2013

Hi,

Reimbursement of telephone expense to employees are in the nature of purquisites to the employees.

Firstly you need to confirm whether these are a part of their salary package. If yes, then you will have to consider this amount in the respective employees salary calculation.

Hence in the above case debiting this reimbursement of telephone expense to the Staff Welfare or Purquisite to Employees account would be correct.