diff --git a/Marco.Pms.Services/Controllers/MasterController.cs b/Marco.Pms.Services/Controllers/MasterController.cs
index 411a413..a7b441e 100644
--- a/Marco.Pms.Services/Controllers/MasterController.cs
+++ b/Marco.Pms.Services/Controllers/MasterController.cs
@@ -928,6 +928,14 @@ namespace Marco.Pms.Services.Controllers
             return StatusCode(response.StatusCode, response);
         }
 
+        [HttpDelete("expenses-status/delete/{id}")]
+        public async Task<IActionResult> DeleteExpensesStatus(Guid id, [FromQuery] bool isActive = false)
+        {
+            var loggedInEmployee = await _userHelper.GetCurrentEmployeeAsync();
+            var response = await _masterService.DeleteExpensesStatusAsync(id, isActive, loggedInEmployee, tenantId);
+            return StatusCode(response.StatusCode, response);
+        }
+
         #endregion
 
         #region =================================================================== Payment mode APIs ===================================================================
diff --git a/Marco.Pms.Services/Service/MasterService.cs b/Marco.Pms.Services/Service/MasterService.cs
index a23a597..d264d11 100644
--- a/Marco.Pms.Services/Service/MasterService.cs
+++ b/Marco.Pms.Services/Service/MasterService.cs
@@ -287,7 +287,6 @@ namespace Marco.Pms.Services.Service
                 return ApiResponse<object>.ErrorResponse("Internal Error occured", ExceptionMapper(ex), 500);
             }
         }
-
         public async Task<ApiResponse<object>> CreateExpensesStatusAsync(ExpensesStatusMasterDto model, Employee loggedInEmployee, Guid tenantId)
         {
             try
@@ -436,6 +435,68 @@ namespace Marco.Pms.Services.Service
                 return ApiResponse<object>.ErrorResponse("Internal Error occured", ExceptionMapper(ex), 500);
             }
         }
+        public async Task<ApiResponse<object>> DeleteExpensesStatusAsync(Guid id, bool isActive, Employee loggedInEmployee, Guid tenantId)
+        {
+            string action = isActive ? "delete" : "restore";
+            try
+            {
+                // Validation if employee is taking action in same tenant
+                if (tenantId != loggedInEmployee.TenantId)
+                {
+                    _logger.LogWarning("Employee {EmployeeId} attempted to {Action} Expense Status in different tenant", loggedInEmployee.Id, action);
+                    return ApiResponse<object>.ErrorResponse("Access Denied", "User do not have access for this information", 403);
+                }
+
+                // Checking permssion for managing masters
+                var hasManagePermission = await _permission.HasPermission(PermissionsMaster.ManageMasters, loggedInEmployee.Id);
+                if (!hasManagePermission)
+                {
+                    _logger.LogWarning("Access DENIED for employee {EmployeeId} for managing EXPENSE STATUS MASTER.", loggedInEmployee.Id);
+                    return ApiResponse<object>.ErrorResponse("Access Denied.", "You do not have permission to Manage masters", 403);
+                }
+
+                var expensesStatus = await _context.ExpensesStatusMaster.FirstOrDefaultAsync(et => et.Id == id && et.TenantId == tenantId);
+
+                // Checking if Expense Status exists
+                if (expensesStatus == null)
+                {
+                    _logger.LogWarning("Employee {EmployeeId} tries to {Action} Expense Status, but not found in database", loggedInEmployee.Id, action);
+                    return ApiResponse<object>.ErrorResponse("Expense Status not found", "Expense Status not found", 404);
+                }
+
+                // Mapping ExpensesStatusMaster to BsonDocument
+                var existingEntityBson = _updateLogHelper.EntityToBsonDocument(expensesStatus);
+
+                expensesStatus.IsActive = isActive;
+                await _context.SaveChangesAsync();
+
+                _logger.LogInfo("Expense Status {ExpensesStatusId} was {Action}d by employee {EmployeeId}", expensesStatus.Id, action, loggedInEmployee.Id);
+
+                // Saving the old entity in mongoDB
+
+                var mongoDBTask = _updateLogHelper.PushToUpdateLogsAsync(new UpdateLogsObject
+                {
+                    EntityId = expensesStatus.Id.ToString(),
+                    UpdatedById = loggedInEmployee.Id.ToString(),
+                    OldObject = existingEntityBson,
+                    UpdatedAt = DateTime.UtcNow
+                }, "ExpensesStatusMasterModificationLog");
+
+                // Mapping ExpensesStatusMaster to ExpensesStatusMasterVM
+                var response = _mapper.Map<ExpensesStatusMasterVM>(expensesStatus);
+                return ApiResponse<object>.SuccessResponse(response, $"Expense Status {action}d Successfully", 200);
+            }
+            catch (DbUpdateException dbEx)
+            {
+                _logger.LogError(dbEx, "Database Exception occured while {Action}ing Expense Status by employee {EmployeeId}", action, loggedInEmployee.Id);
+                return ApiResponse<object>.ErrorResponse("Internal Error occured", ExceptionMapper(dbEx), 500);
+            }
+            catch (Exception ex)
+            {
+                _logger.LogError(ex, "Exception occured while {Action}ing Expense Status by employee {EmployeeId}", action, loggedInEmployee.Id);
+                return ApiResponse<object>.ErrorResponse("Internal Error occured", ExceptionMapper(ex), 500);
+            }
+        }
 
         #endregion
 
diff --git a/Marco.Pms.Services/Service/ServiceInterfaces/IMasterService.cs b/Marco.Pms.Services/Service/ServiceInterfaces/IMasterService.cs
index 774ac4a..039f5bf 100644
--- a/Marco.Pms.Services/Service/ServiceInterfaces/IMasterService.cs
+++ b/Marco.Pms.Services/Service/ServiceInterfaces/IMasterService.cs
@@ -17,6 +17,7 @@ namespace Marco.Pms.Services.Service.ServiceInterfaces
         Task<ApiResponse<object>> GetExpensesStatusListAsync(Employee loggedInEmployee, Guid tenantId);
         Task<ApiResponse<object>> CreateExpensesStatusAsync(ExpensesStatusMasterDto model, Employee loggedInEmployee, Guid tenantId);
         Task<ApiResponse<object>> UpdateExpensesStatusAsync(Guid id, ExpensesStatusMasterDto model, Employee loggedInEmployee, Guid tenantId);
+        Task<ApiResponse<object>> DeleteExpensesStatusAsync(Guid id, bool isActive, Employee loggedInEmployee, Guid tenantId);
 
         #endregion
         #region =================================================================== Payment mode APIs ===================================================================