Travel Expenses Opening Balance?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi, hope everyone's ok...
I am getting really confuzzled with the opening balance on a Travel Exps a/c... As using PEARLS - Expenses = Dr, therefore should it be Dr. But Im thinking that when its paid/cleared off, it will Cr the bank, & Dr the travel exps a/c - therefore increasing the balance on the travel exps a/c (if op bal was Dr) And it should be reducing the balance if its a payment??!!!!! So Should the op bal be Dr or Cr :cry: !! Im starting to panick about the PLB exam in a couple of weeks!! HEEEELLLP!! :-(!!! Good Luck Everyone. Id appreciate any help!!

Thanks again. :)
Haylz xxx

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Travel Expenses Opening Balance?

    The Travel Expenses Account is normally just used to record the expenses paid out during the Financial Year. Therefore you would expect to see only debits moving through the account, the "other side", the credit, would probably be Bank or Petty cash.
    If the employee had to return funds, this would be a credit to the account. I don't think this would be a usual event.
    Do you think that you may be considering this account as a control account, like the Purchase Ledger Control Account? I have never seen a Travel Expense Account work like this, but I am sure some businesses may do this depending on how they operate and especially if they had a lot of sales reps or similar on their workforce.
    Reread the scenario and see whether it is a control account and let us know and we will take it from there.

Categories

Privacy Policy