DEAR SIR/MADAM,
IF PAID BY THIRD PARTY FOR COMPANY BRANCH AS CASH PAYMENT. WHAT IS ENTRY.
REGARDS
GANESH KUMAR KASHYAP
ACCOUNTS EXEC.
12 Replies
ROSHAN PAUL JOSEPH
(CA Final student)
(311 Points)
Replied 05 August 2015
In the books of branch :
Expense a/c / Creditors a/c Dr.
To Third Party
for eg: telephone bill (BSNL) paid by Mr. X
Telephone Bill Dr.
To BSNL
BSNL Dr.
To Mr. X
ROSHAN PAUL JOSEPH
(CA Final student)
(311 Points)
Replied 05 August 2015
On refund of said amount to Mr.X
Mr. X a/c Dr.
To Cash/ Bank
if not paid , it remains as a liability
rakesh
(IPCC Student)
(342 Points)
Replied 06 August 2015
A's A/c Dr. 900.00
To Sales A/c 900.00
(Being goods sold to Mr. A)
ROSHAN PAUL JOSEPH
(CA Final student)
(311 Points)
Replied 06 August 2015
A's A/c Dr. 900
Discount A/c Dr. 100
To Sales A/c 1000
(Guest)
A's A/C............DR. 900
To Sales A/C 900
(Being goods sold to A on trade discount @ 10%)
Reason :
A is a debtor i.e., Asset. Asset has a debit balance. In this transaction Asset is increases. so it is debited.
Sales is a Income and income has a credit balance. So it is credited.
Trade discount is not separately shown in the books of Accounts.
Sheikh M. Afsar
(Finance Faculty)
(22 Points)
Replied 06 August 2015
Well discribed
Trade discount will never shown in the books of accounts.
ish kumar sharma
(Sr. Manager Accounts & Finance)
(301 Points)
Replied 20 August 2015
Mr roshan paul trade dicount could not be shown while journilising the entry, it is cash dicount which reflectsin accounting process, keep this update in your pattern
thanks
ish kumar sharma
(Sr. Manager Accounts & Finance)
(301 Points)
Replied 20 August 2015
any time Mr Roshan
wish you good luck for your future
keep in touch
thanks
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