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EXCESS AMOUNT RECEIVED AGAINST SALES

Allauddin Patel (Accountant ) (115 Points)

10 November 2021

we had sold goods to one of our party of Rs 350000 in fy 20-21 but party credited our account of Rs 360000, so how to treat that excess rs10000 received if we want to close account in this year?

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2 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14868 Points)
Replied 10 November 2021

Show Rs 10000/- as Excess receipt A/c under Indirect Income in P&L Account .

Pass entry

Bank A/c Dr 360000/-

To Excess Receipt A/c Cr 10000/-

To Trade Debtors A/c CR 350000/-

( Being payment received against Invoice No Dt.....)

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prasad Nilugal (3924 Points)
Replied 10 November 2021

If wrongly or by mistake credited to account , then return to Trade Debtor's , or adjust in the next receipt of payment from Debtor's . If no objection from Debtor's then pass above entry .