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Hello Fellow Members,
Got stucked with some account entry.
Basically, the case is this … This is a F&B Company, and currently providing lunch for it’s employees … Understand from F6 that this is not a taxable benefits as this is available to all its employees …
In accounting viewpoint, what would be the double entry for this?
Dr. Employee Benefits
Cr. ???Many thanks in advance to all kind souls that help me with this !!! 🙂
In my opinion…
You recognise the Employee Benefits as your expense (dr)
You need to pay money out for that expense…so…. (cr) cash / bank
😀
Thanks ratna1238, for your kind help …
As this is a F&B company, they prepared the lunch for its employees. Therefore, no monetary transaction is involved between the company and employees …
I trust that each time when such F&B company buys raw food, the entries would be dr stock cr cash …
So, before preparing lunch for its employees, shouldn’t they need to draw raw food from its stock to cook? IMO, the entries would be dr. employee benefits (exp) cr. stock … But still, I’m not too sure whether such entry is correct.
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