Excess payment

Show it as Advance or ask for refund of money.

But now party will not make refund and no billing in future so now?

Create a provision for the said amount

Mr. Sachin :

Make it as Receivable from party or you can transferred to Discount A/c.

Entry :

Party A/c. Dr Rs.4,000/-

 To Discount / Trade Discount A/c. Rs.4,000/-

Thanks...............

Dear Sachin,

If the amount is not refund then you should wite off it as bad debt as it cannot be recovered from the party.

book it as expenditure for the purpose for which it has been paid....since it seems the party may not refund that amount................