Rudrayani Shedjale (Assistant Accountant) (751 Points)
28 March 2019If A pays to B on behalf of C what will be the entries in the books of A,B & C?
please advise.
interview question which made me confused 
Sahil Jain (FAFD, DISA, CA)
(Practicing Chartered Accountant )
(2476 Points)
Replied 28 March 2019
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 28 March 2019
thanks a lot. but i am not able to apply golden rules of accounting in inter party transactions
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 29 March 2019
In the books of A
1. B A/C dr. (Dr.the receiver)
To Cash A/C (Cr.what goes out)
2. Interparty transaction
C A/C dr (which rule to apply ??)
To B A/C
In the books of B
1. Cash A/C Dr. (Debit what comes in)
To A A/C (Credit the giver)
2. Interparty transaction
A A/C dr (which rule to apply ??)
To C A/C
In the books of C
B A/C Dr (Debit the receiver/Debit when Liab decreases)
To A A/C (Credit the giver/Credit when Liab increases)
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 29 March 2019
CAclubindia
