About treatment to goods bought by sub dealer

This query is : Resolved

Rupali Kabra (Querist)
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02 October 2012 sir
suppose a client is sub dealer in auto industry he buys bikes from authorized dealer and sells on commission basis.
now facts are
1-Bill of purchase those bikes from company is in name of main dealer.
2-Sub dealer only receives commission for selling.
3-But while selling he has to also give sale bill to customer
4-so what will be correct accounting entries in relation to buy and sell of bikes in the
books of sub dealer

NILESH MANDOLE, MBA (Fin),CS

NILESH MANDOLE, MBA (Fin),CS (Expert)
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02 October 2012 Authorised Dealer will issue the Bill on the name of subdealer & Subdealer will issue his Bill to the customer.So, subdealer will credit the Authorised dealer and will debit the customer.

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