Transfers

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2009 I have made a sale from Company "X" to Mr A and Mr A has returned goods and payments to My group compnany Say "B".

So How will I transfer the entries in my book taking into consideration both accounting and taxation point of view?

Bishwajeet

Bishwajeet (Expert)
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09 November 2009 1 sales a/c dr
To bank a/c

2 Stock a/c dr
To sales a/c

Ur Tax liability will reduce with that amount, whatever u had collected as a output tax

Guest

Guest (Expert)

09 November 2009 Bishwajee you are wrong......

B a/c Dr
To Sales

in case of return

Goods return a/c Dr
To B

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shakuntala chhangani

shakuntala chhangani (Expert)
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10 November 2009 Dear, with due respect to all the above answers
in your question "Mr. A has returened goods and payments to my group company B"it appears that it is credit sale and since the payment has also been made by Mr. B, only a part of goods must have been returned.consider the following entries :
at the time of sale-
Mr. A's A/c Dr.
To Sales A/c
At the time of return and payment made by Mr. B :
sales return A/c Dr.
B Ltd. A/c Dr.
To Mr. A's A/c
as a result of the above sales return, sales will reduce and the stock will increase. the stock will be divided into two parts- physical stock and stock with B Ltd. . keep in mind stock with B Ltd,. can not be considered as sales. hence B Ltd's A/c can not be debited with the amount of goods lying with it on behalf of the first mentioned Co.