To record the transaction where the company initially pays the visa expenses of employees and later deducts a percentage of the visa expenses monthly from their salary, you can use the following journal entries:
1. Initial payment of visa expenses:
Debit: Visa Expenses (Indirect Expense Account)
Credit: Accounts Payable (Liability Account)
2. Monthly deduction from employees' salaries:
Debit: Salary Payable (Liability Account)
Credit: Visa Expense Recovery (Contra Expense Account)
In Tally, you can create Visa Expenses as an indirect expense account and Visa Expense Recovery as a contra expense account by following these steps:
1. Open Tally and go to Gateway of Tally.
2. From Gateway of Tally, navigate to Accounts Info by pressing "M" on your keyboard.
3. In the Accounts Info menu, select "Ledger" or press "L" on your keyboard.
4. Select or create the Visa Expenses ledger account.
5. Set the group as "Indirect Expenses" to classify it as an indirect expense account.
6. Save the ledger account.
7. Create another ledger account called Visa Expense Recovery.
8. Set the group as "Contra Expenses" to classify it as a contra expense account.
9. Save the ledger account.
To record the initial payment of visa expenses, you can follow these steps to create a journal entry:
1. From Gateway of Tally, navigate to Accounting Vouchers by pressing "V" on your keyboard.
2. In the Accounting Vouchers menu, select "Journal" or press "F7" on your keyboard.
3. Enter the date of the transaction.
4. In the Debit field, select or enter the Visa Expenses ledger account.
5. Enter the amount of the initial payment in the Debit column.
6. In the Credit field, select or enter the Accounts Payable ledger account.
7. Enter the same amount in the Credit column.
8. Press Enter to save the entry.
To record the monthly deduction from employees' salaries, you can create another journal entry:
1. From Gateway of Tally, navigate to Accounting Vouchers by pressing "V" on your keyboard.
2. In the Accounting Vouchers menu, select "Journal" or press "F7" on your keyboard.
3. Enter the date of the transaction.
4. In the Debit field, select or enter the Salary Payable ledger account.
5. Enter the deduction amount in the Debit column.
6. In the Credit field, select or enter the Visa Expense Recovery ledger account.
7. Enter the same amount in the Credit column.
8. Press Enter to save the entry.
By following these steps, you can create the necessary ledger accounts and record the journal entries in Tally to reflect the payment and recovery of visa expenses as an indirect expense.
