Need Help: Accounting Entry — OpenTuition Forums

Lluckycoin15y ago

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 !!! :)

Rratna123815y ago#1

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

:D

Lluckycoin15y ago#2

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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