Acxounting for paypal transaction??

CA Smit Shah (B.Com, M.Com, C.A) (759 Points)

26 September 2012

FRIENDS CAN ANYONLE WILL HELP ME TO UNDERSTAND THE CONCWEPT OF PAYPAL AND HOW ACCOUNTING IS TO BE DONE FOR PAYPAL TRANSACTION???

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5 Replies

Manoj chopra (article) (128 Points)
Replied 27 September 2012

is it payable ?

Manoj chopra (article) (128 Points)
Replied 27 September 2012

PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. PayPal serves as an electronic...

CA Smit Shah (B.Com, M.Com, C.A) (759 Points)
Replied 27 September 2012

THANKS. I WANT TO KNOW WHAT ENTRY WE SHOULD PASS WHEN WE RECEIVE PAYMENT THROUGH PAYPAL.???

AND WHEN WE WITHDRAW MONEY FROM PAYPAL ACCOUNT AND DEPOSIT TO OUR BANK ACCOUNT??

Manoj chopra (article) (128 Points)
Replied 27 September 2012

if u have your paypal account then You need to set your PayPal account up as a bank account in Books.

Bhaskar Unnikrishnan CPA CMA (Accounts / Administration) (414 Points)
Replied 30 September 2012

When you make payments through paypal, its just like Credit Card purchase only. So usual entry for expenses would be enough...

Debit (Expense A/c)

Credit Paypal (under Creditors)

When payment make on date:

(Debiot) Paypal

(Credit) Bank

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