Purchase & sale from same party
Querist : Anonymous
At the time of purchase of goods
Purchases a/c dr
Vat Input a/c dr
To Creditor a/c
(Being goods purchased from XXXXX vide invoice number XXXX on credit)
At the time of sale of goods
Creditor a/c
To Sales a/c
To Vat Out put a/c
(Being goods sold to XXXX vide invoice number XXXX and the sale value is adjusted with the balance due to him).
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
8-8-2013 at the time of purchase
Purchases a/c dr 200000
To X a/c 200000
(Being goods purchased from Mr.X on credit through invoice no:XXXX)
8-8-2013 at the time of sale
X a/c dr 250000
To Sales a/c 250000
(Being goods sold to Mr.X against the balance due to him and sales value adjusted with the balance due to him)
By making the above entries Mr.X shall payable balance to us of Rs.50,000/- so at the time of receipt of such amount has to pass the following entries
Cash/bank a/c dr 50,000
To Mr.X a/c 50,000
(Being balance receivable from Mr.X is received now through ch.no:XXXXX vide r.no:XXX)
If you required any further clarification i am ready to clarify you, please ask your doubt to get clarification in this regards.
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
Mr.X a/c dr 4,20,000
To Sales a/c 4,00,000
To Vat output a/c 20,000
(Being goods sold to Mr.X vide invoice number)
for purchases of goods from Mr.X entry is
Purchases a/c dr 5,00,000
Vat input a/c dr 25,000
To Mr.X a/c 5,25,000
(Being goods purchased from Mr.X vide invoice number)
By passing the above entries we credited the X a/c with Rs. 5,25,000 and debited with Rs.4,20,000 thus X a/c has net balance is Rs.1,05,000 credit(means due to him by us).
The balance appears till you make payment to him or make sales to him etc.. means any transaction with him.
You are saying you didn't paid any balance to him till now then the balance of Mr.X at the end of the month is Rs.1,05,000 credit.
Assuming for the transaction on 8th August the balance is settled by the Mr.X.
In case the balance receivable from Mr.X on 8th August is not settled(means not received from him) then the balance of Mr.X a/c is Rs.55,000/- credit only. Because of on 8-8-2013 he is due to us of Rs.50,000.
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
entries is as follows i already said but your confirmation i saying again.
At the time of purchase
Purchases a/c dr
Vat Input a/c dr(if applicable)
To Mr.X a/c
(Being goods purchased)
At the time of sales
Mr.X a/c dr
To Sales a/c
To Vat Out put a/c(if applicable)
(Being goods sold)
At the time of payment
Mr.X a/c dr
To Bank a/c
(Being amount paid through ch.no:XXX vide r.no:XXX)
At the time of receipt
Bank a/c dr
To Mr.X a/c
(Being amount received through cheque no:XXX vide r.no:XXX)
By passing the above entries through out the year as the each transaction date then on 31st March you have to closing balance of Mr.X Rs.50,00,000/-credit, it shall be carry forward to next year. Thus on 1st April you shall consider the opening balance of Mr.X is 50,00,000/- credit
If you don't mine may i know about your qualification and designation and present job of you.
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
Querist : Anonymous
OM SAI SRI SAI JAI JAI SAI
But my suggestion is maintaining of single account is correct and appropriate for the presentation and clarification and perfect accounting. So if you want to maintain single account from 1-4-2011 then pass the following journal entry on 31-3-2011(assuming you didn't close the accounts on 31-3-2011,in case if the accounts on 31-3-2011 closed already then pass this entry for the current year,manes which is going to finalise)
In your case both accounts means X as debtor and X as creditor you have credit balance so pass the following entry on 31-3-2011 to club both accounts.
Mr.X Debtor a/c
To Mr.X a/c
(Being balance of Mr.X debtor transferred to Mr.X account due to the clubbing of two accounts for the same party)
Mr.X Creditor a/c
To Mr.X a/c
(Being balance of Mr.X creditor transferred to Mr.X account due to the clubbing of two accounts for the same party)
And for 2011-12 open only Mr.X account and brought forward the balance as shows on 31-3-2011 after passing above entries.
So if you want to continue 2 accounts from 1-4-2011 then don't club both accounts on 31-3-2011 and open two accounts for 2011-12 and brought forward of the balances. and continue the accounting as you followed previously.
In case if you want to maintain only one account then pass the following entries 2011-12
At the time of purchase
Purchases a/c dr
To Mr.X a/c
(Being goods purchases vide invoice no:XXXX)
At the time of sales
Mr.X a/c dr
To Sales a/c
(Being goods sold vide invoice no:XXXX)
At the time of cheque payment
Mr.X a/c dr
To Bank a/c
(Being paid through cheque no:XXXX)
At the time of cheque receipt
Bank a/c dr
To Mr.X a/c
(Being cheque no:XXXX received)
Still if you have any query or doubt i always available to clarify you, please post your doubts for further clarification.
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
Querist : Anonymous
X(creditor)Dr 15 lakhs
To X(debtor) 15lakhs
(being debit & credit amount set off on 31-3-2011)
So in Balance sheet on 31-3-2011 X balance will be rs 100000/.Please help me
Querist : Anonymous
If you want single account then grouped under either creditor or debtor based on which transactions is more,means if the purchases are more than sales than under creditor and if the sales are more than purchases then under debtor.
If you not want to maintain single account means want to maintain two accounts then don't club it and disclose as like two different parties treatment.
The classification and grouping is important at the time of date of preparation of balance sheet, so if you want to maintain single account then as on the date of balance sheet if the balance is credit balance then group under creditor or if it is debit balance then group under debtor meanwhile the grouping is not important.
I once again asking you may i know about your educational qualification and professional qualification. if you don't mine please give answer to this my question.
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
2)IF 2 Accounts of X are b/f on 1-4-2011 what amount will be shown in balance sheet on 31/3/2011 of Mr X. If X (debtor) has debit balance of RS 15 lakhs on 31-3-2011 and X ( creditor) has credit balance of RS 16 lakhs on 31-3-2011 what amount will be shown in balance sheet on 31-3-2011 if 2 accounts are not clubbed and separate accounts are B/f on 1-4-2011. Please explain with journal entries & narrations .Can we pass this entry also on 31-3-2011
X(creditor)Dr 15 lakhs
To X(debtor) 15lakhs
(being debit & credit amount set off on 31-3-2011)
So in Balance sheet on 31-3-2011 X balance will be rs 100000/.Please help me .Please clarify my this question also
OM SAI SRI SAI JAI JAI JAI
You want to continue two accounts so i suggested disclose two accounts separately in balance sheet because of don't go for confusion while consideration of opening balances further, So if you want to disclose two accounts in balance sheet then no need to pass any entries on 31st March.
Otherwise means you can optionally show single account balance in the balance sheet then you have to pass the entry what you said in your query on 31St March, as well as you want to continue two accounts further so on 1st April you have to reverse the above entry passed.
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
X(creditor)Dr 15 lakhs
To X(debtor) 15lakhs
(being debit & credit amount set off on 31-3-2011).
so X (creditor) balance is rs 100000/cr on 31-3-2011.
IN BALANCE SHEET I HAVE SHOWN X (CREDITOR) BALANCE 100000/ on liabilities side.
Is this right. can I pass the above entry.
please reply immediately.As I have to submit ledger copies to Income tax authorities.
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
X Creditor a/c dr 15 lakhs
To X Debtor a/c 15 lakhs
(Being balances of two accounts of the same party as debtor and creditor is clubbed for the purpose of finalisation of accounts)
And you want to continue two accounts from 1St April also so on 1St April you have to pass the following entry
X Debtor a/c dr 15 Lakhs
To X Creditor a/c 15 Lakhs
(Being entry passed on 31St March for clubbing of same party account is now reversed for continuing two accounts)
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
For all VAT on the purchases shall debit to the VAT input account and VAT on sales shall be credit to the VAT Output account. and on the each month ending both the accounts shall be club by passing the following entry
Vat Output a/c dr
To Vat Input a/c
(Being balance of Vat input amount adjusted with the vat payable account)
then we have to balance of payable vat amount then at the time of payment of vat the following entry shall be pass
Vat Output a/c dr
To Cash/Bank a/c
(Being vat tax payable is paid through XXXX)
In case if you want to maintain only one account for vat i.e VAT account then such VAT Account shall be grouped under current liabilities and pass the following entries
When vat input on purchases
Vat a/c dr
To creditor's account/cash/bank a/c
(Being goods purchased vide invoice no:XXXXX on such purchases vat tax input available)
When vat output on Sales
Cash/Bank/Debtor's a/c dr
To Vat a/c
(Being goods sold vide invoice no:XXXXX and on such sales vat payable is recognised)
When at the time of payment of VAT tax to the government
VAT a/c dr
To Cash/Bank a/c
(Being vat tax payable is paid now through cheque no:XXXX)
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
Vat output a/c dr 100000
To Vat Input a/c 100000
(Being vat input available adjusted with the vat payable amount)
By passing the above entry you have vat output of Rs.50000 means you have to pay this amount for July to the sales tax department.
So at the time of payment of this amount the following entry has to pass
Vat output a/c dr 50000
To Cash/Bank a/c 50000
(Being vat tax payable for the month July 13 paid)
In the month of August 2013 you have Input VAT more than the Output vat so has to pass the following entry at the end of the August 2013
Vat output a/c dr 100000
To Vat Input a/c 10000
(Being vat output amount adjusted with the VAT input available)
By passing the above entry you have VAT input credit of Rs.100000 means you didn't have any vat tax payment liability for the month of August 13. so this vat input balance amount shall be carry forward to September 13 for adjustment with the September 13 VAT output.
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
Then please provide me the details below
first confirm me you are saying you credited Party X account means he is the creditor to you then who did you received cheque from him you have to pay cheque to him?
date of receipt of cheque and which entry you passed at the time of receipt of cheque and is cheque has been cleared into the bank on or before 31-3-2013.
Please provide me above details i will explain you.
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
Bank A/c DR 50000
To X A/c 50000
Being cheque no received
Cheque cleared before 31/3/2013
Pass the following entry to rectify the mistake on 1-4-2013 or any other date during the current financial year
Mr.X a/c dr
To Mr.Y A/c
(Being cheque no:XXXX received on XX-XX-XXX from Mr.Y wrongly credited to the Mr.X account now the rectification entry passed and rectified the mistake)
Due to the mistake committed by you not affected any cash so it is not considered as the fraud as well as aggregate of the total debtors as on 31-3-2013(as submitted in Return form) also not effected and same as per your books.
So its not problem to you and pass the above rectification entry i said i will rectify you mistake and shows correct balances due of the debtors individually.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
However to cancel your TAN the department shall accept at least you didn't have any transactions related to TAN since 2 or 3 years, Then it assumes you not required to holding of TAN because of you are not liable for TDS/TCS deduction.
However mention the reason what you said in the letter
the format of letter is
Placase
Date
From
XXXXX
XXXXX
XXXX
PAN:
TAN:
To
XXXXX
XXXX
XXXX
Sub:- surrendering of TAN no:
I XXXXXX at this time have not any TDS/TCS deducted transactions so i request you please cancel my TAN No:
Thanking you
XXXXXXXXXX
Enclosures:
1) Original TAN Card
2) Closing letter of loans or etc.. previously on which you TDS/TCS deducted.
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
Querist : Anonymous
Querist : Anonymous
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
Querist : Anonymous
Querist : Anonymous
For changing of Proprietor name in the RC with the Sales tax department, please contact sales tax department for your region because of the process may be differ from state to state.
OM SAI SRI SAI JAI JAI SAI
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