22 December 2011
Dear Friends , please help me on the following Situation regarding credit card sales accounting.....
Suppose there are 2 Shops.... A & B..... we are doing accounting of A. A does not have credit card Swipe Machine.... But A has Control over B's Swipe Machine and B's Machine is at A's place. So Credit Sales of both Shops are Swiped at B's machine.....after Swiping B pays Cash to A against Swiping and A pays to B after deducting credit card sales of A. so please help me how should i do accounting of above transactions...i.e sales entries and transactions of receipt and payment from/to B.
Accounting in such case is not an issue, the sales of A swiped on B's machine should be shown as receivable from B and credited to sales account in books of A.
But, at the time of assessments it might be difficult to prove this round transaction. Hence it is advised that, if it is once in a while case, then its fine. but is not preferable on a long term basis.
CAclubindia
