Tally- reporting- urgent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 August 2012 Dear All, Please Suggest for following:

Ours is Vehicle Dealer ship business. We have Tally ERP 9 for accounting and Reporting. ISsue is:

Our Dealership will incur the Advertisement Expenditure (like Hordings, Brochures, Sale Camps etc.,) and later it will claim the expenditure so incurred to Vehicle Manufacturing Company. Vehicle Manufacturing Co., will reimburse 60% of amount not in cash but it will credit our Dealership account in its books and issue Credite note to acknowledge the same to our dealership firm.
I thought the entries for all the transactions as:
1. When Dealership incur the amount
Advertisement Expenditure Debit 10,000
To Bank Account 10,000
2. When Claim lodged
Advertisement Claim Debit 6,000
To Advertisement expenditure 6,000 (being 60% of expenditure)
3. When Vehicle Mfg Co, Credits our Account
Vehicle Mfg Co., Debit
To Advt Claim Credit

Also I thought: create Sub Group of Advertisement Claim Account under head of Sundry Debtors.(In Tally ERP9) for reporting Purpose.

Did I think Correct? Suggest developments....

Vineet

Vineet (Expert)
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28 August 2012 first entry is correct in second entry you can debited the account of your vehicle manufacturing company and showed them as a debtor with full amount.

manufacuting compnay ac debit to 10000
to expenditure accoount 10000

when you received 40%
bank account debit to 4000
to debtor account 4000

now pass a credit note issued by debtor as
advanced received from customer ac debit to6000
debtor ac 6000

you can used any other relevant head suits your need while passing a credit note..you can debited any other account..I think this will be fine