Inter party transaction

This query is : Open

rishabh bhatia (Querist)
Follow

01 September 2018 Dear sir,

I have a accounting related issue. I am preparing accounts for my client. The issue while accounting is this he sale to varies party non gst goods ( Hari Mutur ) from purchasing the mutur from agriculturist.

He sale in the name of orignal party and receive the payment of sale from some other party on behalf of orignal party. Now how the balance of orignal party and other party (who transfer us the payment but no sale is made to them) treated.
example- sale made to rajendra for rs 10 lakh and bill is raised in the name of rajendra for rs 10 lakh and payment is received from akshat rs 10 lakh now how i adjust that payment from akshat is recieved on behalf of rajendra. my issue is how i clear the both account.

Please suggest

RAJA P M

RAJA P M (Expert)
Follow

01 September 2018 Sale entry to Mr Rajendra... Receipt entry for Mr Akshat... Journal entry required as following Dr. Akshat - Rs. 10 lakhs Cr. Rajendra - Rs. 10 lakhs