Dear Friends,
I want to know the accounts payable & receivable entries in briefly. Please give with examples.
Thanx & Regards
Sathis
NANDURI RAVI SURYA NARAYANA MU
(ACCOUNTANT)
(194 Points)
Replied 29 March 2009
Dear Satish,
For generating of main income we are having some main expenses, these expenses is on either credit or cash basis, we must credit the amount to the party account i.e. nothing but Accounts payble to suppliers, viz, after we are selling the items to our customers, in this case we must debit the amount to customer i.e. accouts reaceivables from the customer.
Eg:
While we are in purchase from the suppliers
Material / Purchases A/C. Dr xxxxxxxxx
To Supplier Name XXXXXX
(Being JV passed for supply of material or purchase vide invoice no. and quty etc:)
While payment made to suppliers
Supplier Name A/C Dr XXXXXXX
To Bank Accounts xxxxxxxxxxx
(Being amount paid against the invoice amount adjusted)
For Account Receivables Entries:
Despatch the items to our customers
Customers A/C Dr XXXXXX
To Sales A/C. XXXXXX
(Being JV passed for quty: @ Rs. saled to the party vide LR No. and Way Bill No. and Weight Bridge NO. and Security Gate Pass No.)
While amount given by customer:
Bank A/C. Dr XXXXXXXXX
To Customer A/C XXXXXXXX
(Being amount received against the sales invoice no. )
After then you will check credit period and you can make a sheet with ageing wise, after mapping the amount paid to Accounts paybles to suppliers and Account receivables from the customers.
Please let me know your problems
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