Gift rule double entry

Hi expert.. My company bought gifts for employee price above rm500. How should I capture tx ds in my account? I need to issue an invoice? To every single staff or can all combine into one invoice with an attached staff listing as supporting?

Dr staff welfare. Rm1000 Tx
Dr gst input tax. Rm60 Tx
Cr supplier rm1060

Dr supplier. Rm 1060
Cr bank. Rm 1060

Dr inv ( quention: individual staff or combine staffs)
Cr ??? Unknown account ( is not sales, what account shld i put)
Cr gst output tax

Kindly advice. Thanks

Asked on May 4, 2018 2018-05-04 10:46:00 Business (商家)
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4 Answer(s)

Is the gift value more than RM500.00 to each staff?  If it is then this will come under Gifts Rule and account for output tax (DS).  You can issue a normal invoice to each of your staff getting the gift value more than RM500.00

I would suggest the accounting double entry as follow :

DR. Gifts A/C – RM1,000 (TX)
CR. GST Input Tax Credit – RM60 (TX)
CR. Supplier – RM1,060 (OP)

DR. Supplier – RM1,060 (OP)
CR. Bank – RM1,060 (Either OP or leave blank or use your accounting GL code)

DR. Individual Staff A/C for getting more than RM500.00 (OP)
CR. Gifts A/C (DS)
CR. Output Tax Payable (DS)

Answered on May 5, 2018. 2018-05-05 02:06:00
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Thanks.. Means. At the end.. The gift account will be contra off? But how abt the individual staff a/c? How to credit it back? Tq

Answered on May 7, 2018. 2018-05-07 06:58:51
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You can write it off in the accounts since you will not be receiving any proceeds.

Answered on May 8, 2018. 2018-05-08 01:59:06
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Answered on May 8, 2018. 2018-05-08 04:06:49
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