Purchase & sale from same party

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2013 I AM A DEALER UNDER IN WEST BENGAL. I AM PURCHASING GOODS FROM A DEALER HAVING VAT 5% .AT THE SAME TIME I AM SELLING OTHER ITEMS TO SAME DEALER HAVING VAT 5%.WE ARE REGULARLY PURCHASING & SELLING GOODS TO EACH OTHER THROUGH OUT THE YEAR. HOW SHOULD I MAINTAIN THE ACCOUNTS. WILL I HAVE TO MAINTAIN TWO LEDGERS OF PARTY OR IN A SINGLE LEDGER I CAN MAKE PURCHASE SALE ENTRIES. PLEASE EXPLAIN WITH ENTRIES & NARRATION. WILL THERE BE ANY PROBLEM FROM SALES TAX & INCOME TAX AUTHOROTIES . PLEASE TELL HOW TO MAINTAIN LEDGER WITH ENTRIES & NARRATIONS

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

03 October 2013 I already replied to your same query on yesterday but you didn't give any respond to such query(i think you may not say that reply or may not satisfy with the reply) so please saw that reply and post your view if you not satisfied i may further clarified you, without replying to answered queries asking number of queries is time waste and you may not get clarification today i saw your same queries three times. So please respond with your view of satisfication.

However i again here providing the reply here once again.

click on below link.

https://www.caclubindia.com/experts/purchase-sale-from-same-party-1463089.asp#.Uk0d7X-Quho

I am sorry if the yesterday's queried Author is not you(because of all the quaries regarding this posted as Anonymous)

OM SAI SRI SAI JAI JAI SAI

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2013 I HAVE POSTED MY QUERY IN DETAIL . PLEASE EXPLAIN IN DETAILS iF PURCHASE AND SALE FROM SAME PARTY GOES THROUGH OUT THE YEAR . HOW WE WILL MAINTAIN THE ACCOUNTS. WHAT WILL BE ENTRIES & NARRATIONS

Upgrade to CAclubindia Pro. Subscribe Now!

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

04 October 2013 I replied to your another query so please saw and consider.

OM SAI SRI SAI JAI JAI SAI

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2013 I HAVE RECEIVED LETTER FROM IT REQUIRING INFORMATION FOR TRANSACTIONS FOR FY 2010-11 from a party. I HAD MADE PURCHASE & SALES FROM THE SAME PARTY. I HAD ALSO RECEIVED & PAID THROUGH BANK TO SAME PARTY. THERE IS CREDIT BALANCE AT THE END OF YEar. SHALL I KEEP & SHOW ONLY ONE LEDGER OF THE PARTY .PURCHASE & SALE CAN BE SHOWN IN SINGLE LEDGER oF PArty. PLEASE EXPLAIN ME how to give information to IT JOINT COMMISSIONER required by them .I am in a dillema.PLEASE REPLY IMMEDIATELY.THE PARTY HAVE OPENED TWO ACCOUNTS OF ME - 1)CREDITOR 2) DEBTOR .The party have shown 2 accounts of me. Please explain me how to show my accounts immediately

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

11 October 2013 As per the accounting norms also one account for one person(means for the same name) however we can make both accounts as creditor and debtors but as on the balance sheet we have to club both and has to disclose one balance only means only one account for one person.

So even such party maintained two accounts you need not to be maintain two accounts. So you shall take the print out of the ledger copy of your accounts for such party and submit it to the officer from where you get notice. Maintaining of two accounts and single account at net balance shall be the same.

I think your party's case shall go to the scrutiny assessment on such assessment for confirmation of balances the commissioner required to you. So take print out of ledge copy and forward it to the commissioner, Need not to be worry with this regards.

OM SAI SRI SAI JAI JAI SAI

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2013 THANK YOU VERY MUCH FOR YOUR VALUABLE REPLY.IF ANY QUERY FROM MY SIDE I WILL SOON POST IT AGAIN.

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2013 I HAD MAINTAINED 2 ACCOUNTS OF PARTY X.I SOLD GOODS TO MR X OF RS500000/ & received Cheques of Rs 2200000/ during year 2010-2011.SO X(DEBTORS) balance is RS1700000/ CR Balance on 31-3-2011.Again during 2010-11 I purchased goods from Mr X(creditor) of Rs 3500000/ & paid Rs 200000/ during 2010-11. SO X (Creditor) balance as on 31-3-2011 is Rs3300000/ CR Balance on 31-3-2011.Now I want to ask how I will club both the Accounts & on which date. What will be the journal entry & narration.What will be the balance on 1-4-2011. again how I will maintain Accounts from 1-4-2011.whether 2 accounts of Mr X will be opened on 1-4-2011. How will be balance B/F in two accounts OF X.Please explain me in details with entries & narrations Both for year 2010-11 & year 2011-12.

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2013 THIS IS FURTHER TO MY QUERY .IN 2011-12 I COULD NOT GIVE GOODS TO MR X BUT PURCHASED GOODS FROM HIM OF RS 1800000/ .SHALL I MAINTAIN SEPARATE ACCOUNTS WHICH ARE BF FROM 31-3-2011. PLEASE HELP ME URGENTLY.WAITING FOR YR REPLY