It is important to ensure that all transactions are recorded accurately and promptly to maintain proper financial records. In conclusion, the payment of travelling expenses on behalf of Sudhir has been recorded in the books of accounts as per the accounting principles. After the customer pays, you can reverse the original entry by crediting your Accounts Receivable account and debiting your Cash account for the amount of the payment. This information is also used for preparing financial statements, which are essential for making business decisions and meeting regulatory requirements. To create the sales journal entry, debit your Accounts Receivable account for 240 and credit your Revenue account for 240. If a customer agrees to reimburse you for certain expenses, then you can record the reimbursed expenses as revenue. When to Record Reimbursed Expenses as Revenue. It is important to record every transaction accurately and promptly in the books of accounts as it helps in maintaining proper financial records and tracking the company's expenses. Examples of reimbursed expenses are travel expenses paid by an employee while on company business, as well as a lunch with a client that is paid for by a company salesperson. 1000 has been paid out of the company's cash/bank balance. In each entry his occupation was listed as salesman. Suppose a business pays a manager a 4 commission based on its profits after expenses including the commission. Cash/Bank Account is credited as the amount of Rs. On the 1910 census form, his occupation was listed as travelling salesman. Cash/Bank Account is credited as the amount of Rs. Travelling Expenses Account is debited as it is an expense incurred by the company on behalf of Sudhir. Want to make 20 transaction project check out this link: 20 transactions with their Journal Entries, Ledger and Trial balance. Travelling Expenses Account is debited as it is an expense incurred by the company on behalf of Sudhir. Paid travelling expenses on behalf of Sudhir On behalf of Sudhir, I have paid travelling expenses of Rs. You can pay off the liability from distributions if you want after your shareholder meeting that approves the. You have pay the liability back, as far as I know there is no real time limit. line two the liability account and the same amount as a negative number. When the company receives the cash against the goods sold on credit, the cash accounts will be credited as there is the receipt of the money against the goods sold on credit. line one the expense account and the amount. Journal Entry: Paid Travelling Expenses on Behalf of Sudhir The entry to record the sales on credit is as follows: Particulars.
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