Chart of Accounts

[NU-LTGx]

Our company buys lunch/dinners for employees at times and have it delivered. The company will add a tip/gratuity to the total amount. So, the total amount is paid with the company bank card (Linked to the checking account). Do I separate the meal from the tip? If so, how do I do that and which account does the tip go under in the chart of accounts? 

Thank you in advance!!

[lynda · Accepted solution]

Hello @NU-LTGx:  The meal is the cost of dining out including the tip.  Here is a good article on meals and entertainment expenses for 2018 as the new tax law has changed the way you expense it this year.

Lynda

[NU-LTGx · Accepted solution]

Thank you! And thank you for the quick reply!