Advance paid to party on behalf of company by a outsider now company is paying amount to outsider and amount should be taken from party.
What will be the journal entry
4 Replies
RAJA P M
("Do the Right Thing...!!!")
(128096 Points)
Replied 08 February 2018
If Party is A.... Outside Party is B...
As per your query Payment made to Mr B as
Dr. Mr. B - XXXX
Cr. Bank - XXXX
It will journal to Mr. A as
Dr. Mr. A - XXXX
Cr. Mr. B - XXXX
Note : As per above query we will post the Entries. But, As per my view it's not good or Advisable...
satish
(teaching)
(2046 Points)
Replied 08 February 2018
In the books of company:
1. when a party X paying advance money to Party Y on behalf of company
Party Y A/c Dr.
To Party X
2. when company is paying money to party X
Party X Dr.
To Bank
JORDAN
(ACCOUNTANT (GENERAL))
(24 Points)
Replied 15 December 2019
Is Journal entries print out important?
prasad Nilugal
( GST Practitioner & Accounts )
(14846 Points)
Replied 15 December 2019
Lets say 1) Company = A 2) Outsider = B 3) Party =C ( sundry creditors )
All the entries in the books of company A
1) 1st J. E will be Advance to C
Advance to Mr C A/c Dr
To MR B Cr
( Being advance paid by Mr B to party on behalf of our Company )
2) Same advance paid by B return to him so entry will be
MR B A/c Dr
To Bank A/c Cr
( Being advance paid by B return to him )
3) When you received Invoice form party C ( sundry creditors )
Adjustment entry
Mr C A/c Dr
Advance to Mr C A/c Cr
( Being Advance payment adjusted after receipt of Invoice )
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