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Accounting entries

03 March 2010

Dear all,

We purchase Tiles through One of the Broker and Bill in the Co Name Radha Krishna Granites. But we issued the cheque in the name of Broker. Now which entries to be passed for the Payment and also purchase............

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4 Replies

V P Narasimhan (Accounts Manager) (791 Points)
Replied 03 March 2010

Dear friend

We can make entries in to 2 types 1) In Radha Krishna Granites ledger a/c you can mention that the chq has been issued in fvr of the Broker (name) in narration or 2) You can edit the Ledger a./c name of Radha Krishna Granites as Radha Krishna Granites/Briker (name) A/c to identify in future.

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Nomula Sreenivasarao (DGM -Accounts) (163 Points)
Replied 14 March 2010

Dear Vijay ,

The entry should be

Tiles A/c Dr

To Bank A/c (Radhakrishna Granites...)

(Purchase of Tiles from Radhakrishna granites and issued cheque in favour of agent/broker of radhakrishna granites)

vaishali (accountant) (52 Points)
Replied 17 March 2010

Originally posted by : N. SREENIVAAS
	Dear Vijay , The entry should be Tiles A/c Dr To Bank A/c (Radhakrishna Granites...) (Purchase of Tiles from Radhakrishna granites and issued cheque in favour of agent/broker of radhakrishna granites)

Dear Vijaya,

For booking purchase of Tiles

Tiles a/c Dr

To Tiles seller’s a/c

You’ve wrongly done payment to broker instead of the tiles seller

If the brokerage is payable to the broker then you can adjust the said amt. in his brokerage or otherwise you can ask him to return the amt by cheque. ( Considering the TDS liability )

Then for payment

Tiles seller’s a/c Dr

To Bank