legal fee book entry.

seema sharma (Querist) 07 May 2013 This query is : Resolved
Sir.
Where shoiuld I post entries for payment made as advocates fee.what is the process to make it reflect as receivable.
Pls guide.

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prabhakar singh (Expert) 07 May 2013
How to post entries is not a legal query?

Anyway there are only three basic rules on basis of which entries are made:

Dr.(debit)what comes in
Cr.(credit)what goes out..for personal a/cs(1)

Dr.the receiver,and
cr.the giver.............for real a/cs(2)

Dr.the losses and expenses
cr.the profit(all income) and gains.....for nominal a/cs(3)

Now you can analyze that payment made as legal fees is an expenditure of business
and relates to nominal a/c.Hence entry would be:

Legal fees a/c dr. debit credit
To cash/cheque a/c
( legal fees paid to...)

seema sharma (Querist) 07 May 2013
sir, but we wish to show the entry as receivable.(because the expense is incurred on one member only not for all members)

Devajyoti Barman (Expert) 07 May 2013
Take help of a tax consultant.

Anirudh (Expert) 07 May 2013
Whose books of accounts are you maintaining? What do you mean by saying that expense was incurred on account of one member? Members of What?

Guest (Expert) 07 May 2013
Hope your chartered accountant can well do the job, However, with usual entries of Credit to bank/Cash and debit to the advocate/consultancy fee, etc., you can make other entries by passing journal entries, like --

Debit "name of the person from whom receivable"
Credit "Accounts receivables"

R.K Nanda (Expert) 07 May 2013
contact ur CA.

Shashikant V. Patil (Expert) 07 May 2013
This query is pertaining to taxation and there is also site available like our site i.e. CAclubindia. You may better ask to them.

prabhakar singh (Expert) 08 May 2013
seema sharma ji!
What business your firm do?
What concern you have in the firm?
Explain elaborately what does your own expression"(because the expense is incurred on one member only not for all members)" MEAN????

Sadashiv Rupchand Gaikwad (Expert) 14 July 2013
If it is in a personal nture it should debited to Personal capital a/c and if it is related to business it should debited to Prfit and Loss a/c

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