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Accounts entry e commerce

ramesh pai (student) (59 Points)

07 October 2021

Please help to record Accounting entries for food delivery aap

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4 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 07 October 2021

Please elaborate in details

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ramesh pai (student) (59 Points)
Replied 07 October 2021

Food delivery aap obtains order from customers . delivery aap purchase the food from partners and sell to customer.for that aap will get commission and delivery charges.my main doubt is whether to record purchase and sale or only commission and also get information relating to payment to be made to hotel.the payment is made to hotel after one week after deducting commission

Kev Men (788 Points)
Replied 08 October 2021

Since the delivery app is taking orders on a principal to principal basis and withholding the commission and paying the rest to the hotels after a week, it is advisable to record purchase and sales instead of only recording commission.