A Tust has 3 School A,B & C. -All of them maintain separate books of Accounts. -Expenses of Electricity Bill arise A-1600, B-1000 &C-1400. All of them made provisions in their respective books of Accounts. - But cheque of total rs.4000 issue from School A. what will be the journal entries and under which group in Tally ERP 9.
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Quick Summary
This discussion clarifies how to handle shared electricity bill payments across three school branches (A, B, and C) within a trust, using Tally ERP 9. It details the necessary journal entries in each school's books, particularly when School A pays the total bill on behalf of B and C. The advice includes setting up 'School B' and 'School C' ledgers under 'Branch/Division' in School A's accounts and provides the correct debit and credit entries for the electricity expense and bank payments.
In the Books of A entry will be Electricity Exp A/c Dr To Bank. A/C Cr (Being electricity Exp paid)
In the Books of B entry will be Electricity Exp A/C Dr To A A/c Cr (Being electricity Exp paid by A school ) when you pay back to A school entry will be A. A/C. Dr To Bank. A/c. Cr ( paid to A school Account paid earlier )
In the Books of C entry will be Electricity Exp. A/c Dr To A. A/c Cr ( Being electricity Exp paid by A school ) when pay back to. A school A. A/c Dr To Bank. A/c. Cr (Payment made to school A , earlier paid )
In the Books of. B and C , A account will be under current liabilities balance sheet .
You can see in Bank ledger of A school , all entries , on credit side.entry of Rs 4000/- paid and on debit side , amount received from B Rs 1000/- and amount received from C 1400/- .