Re: A funny thing happened...

Paul Harris wrote:

Eddie Langdown wrote:

I can tell you that I am not at all happy with my name appearing against a
massive amount. but the person who did our accounts ( and we could find
no-one else ) the DC's brother, insisted that he did it that way "the
proper way" .....

I act as Treasurer elsewhere and would suggest that the *proper way*
would be to record in the books who the payment goes to and what it is
for. However having done that when it comes to the published accounts
one only shows what the payment was for and not who made the purchase on
behalf of the Group.

I agree with that except that, as I've suggested to Ewan, when you're
recording in the books who the payment goes to, and certainly where you are
reimbursing against a receipt, the "proper way" is to 'look through' who
actually made the purchase on behalf of the Group and record the name of the
supplier as shown on the receipt.

I'm sure there are accountants out there who can give a reference to GAAP,
but I have always found that advice given by HMRC, and before them the IR,
is worth following, and HMRC say (in Chapter 5 of Guide 480 Expenses and
Benefits):

Purchases on employer?s behalf
Businesses are often run in such a way that employees make payments on their
employer?s behalf.
For example an employee may buy stamps, stationary and items of equipment
for the employer
and be reimbursed the costs incurred from petty cash or by cheque. Such
transactions are not
providing the employee with either earnings or expenses because the employee
has received no
money of his own. Accordingly such reimbursements need not feature on the
P11D.

Note: 1) such transactions are not 'employee' expenses, so shouldn't be
recorded as such.
2) stationary is spelt with an 'a'.


--
John Russell
CSL 1st Pinhoe Exeter Devon
http://www.pinhoescouts.org.uk/cubs/
Cubs don't care how much you know, but they need to know how much you care.

.

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