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Company credit card used for personal use

An employee used company credit card for personal use and gave us back cash in hand to return.

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An employee used company credit card for personal use. They gave us back cash in hand to return the money.

I can either use the money on petty cash or deposit into our bank account.

question is which journal do i have to do to reflect the credit card and cash in hand?

Thank you,

Replies (5)

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By Duggimon
23rd Jun 2022 10:21

Dr employee loan Cr credit card
Dr cash in hand Cr employee loan

Or do it in one and leave out the employee loan.

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Replying to Duggimon:
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By MCKrug
23rd Jun 2022 15:17

Thank you,

I dont have employee loan, so will do:

DR Petty Cash and CR Credit Card

Is that ok?

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Replying to MCKrug:
paddle steamer
By DJKL
23rd Jun 2022 18:53

Depends how you post the credit card transactions in the first place. Contra or loan account springs to mind.

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Replying to MCKrug:
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By DKB-Sheffield
23rd Jun 2022 20:28

This is one instance I wouldn't be 'cutting corners'.

4 journal lines instead of 2 may show greater accountability as to what 'actually' happened.

If no 'employee loan' nominal, maybe create one, use wages control, or some other 'control account'. Afterall you didn't withdraw cash from the credit card.

Obviously, materiality may have a bearing on how you account for it. £3 is one thing, £3K may require something entirely different. Furthermore, regularity may also be a consideration... a one-off may determine an alternative treatment to a weekly occurrence.

That said, so long as you have a sufficient audit trail (within or outside if the software), small amounts are unlikely to attract much scrutiny!

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By Tax Dragon
23rd Jun 2022 22:56

"I dont have employee loan"

A loan is a debt viewed down the other end of the derder. (And if there was no debt, why did the employee repay it? In fact, what did the employee repay?)

DKB mentions quantum. I'd add period. If there were no sleeps between using the card and handing over the cash, that feels to me different to the situation where there were many sleeps separating the transactions.

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