Sir, I manage accounts of a Mandi trading firm.
I want to know that when purchasing from farmers, do we have to open individual ledgers of farmers or we can pass entry with one ledger named farmer purchase for all purchases?
also can we pass entry for cash purchase from farmers without opening their names?
1)In credit purchase you have to open individual ledgers of farmers under sundry creditors .
2) For cash purchase not necessary . only pass entry
purchase A/c Dr
To Cash A/c Cr
( Cash purchase)
CAclubindia
