What is the entry for an employee’s personal phone calls included in the company’s bill?
Let’s assume that an employee has made personal phone calls of $20 which are included in the company’s phone bill of $100. Below are two options for recording the cost of the employee’s personal phone calls.
If the employee is paying (reimbursing) the company immediately, you can record the entire phone bill with a debit of $100 to the company’s account Telephone Expense. You will also credit Telephone Expense for $20 when you record the $20 receipt from the employee.
If the employee is not paying the company immediately, you can record the $100 phone bill by debiting Telephone Expense for $80 and debiting the asset account Receivable from Employees for $20. When you receive the $20 from the employee, you will credit the account Receivable from Employees.
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3 Responses to “What is the entry for an employee’s personal phone calls included in the company’s bill?”
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We could even recover the personal call charges from salary of the employee. Then the entry would be - debit to Salaries payable and credit the telephone expenses. Some companies maintain the seperate ledger for employees for salaries then the personal account would be debited credit to the telephone expenditure.
If employee dont pay immediately , it will booked as a Advance to that particular employee then deducted from his salary accounts.
hi every body
can i ask a question???
how we assuming this 20 $?
and about the entry its how this company record it by:
1- recover it from next month salary .
2- record it as a due amount until they pay.
3-if the employee have an credit account (we can minus this amount from his credit current account in bank.
i don’t agree to pay it immediately!!!
thanks for your reading .