What is the entry of money given to a person as a compunsation

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1359 Points Posted on 02 November 2021
what is the entry of money given to a person as a compunsation for filing case of side effects caused by using our company product
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On 02 November 2021 at 16:22 Report
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This discussion clarifies the accounting entry for compensation paid to individuals due to side effects from a company's product. It explains that the compensation paid account is debited, while the bank account is credited when money is disbursed. This entry reflects the financial outflow for settling such claims.

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CA
10436 Points Posted on 02 November 2021
Buyer's claim charges Dr.
To Bank. Cr.

please like if u found it useful
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On 02 November 2021 at 23:04
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Chartered Accountant
24588 Points Posted on 03 November 2021
Compensation paid a/c dr
to Bank a/c
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On 03 November 2021 at 06:17
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CA
10436 Points Posted on 03 November 2021
That's what I said
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On 03 November 2021 at 14:49

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