Journal Entries of Paying Expenses on the behalf of Others

Page no : 2

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 18 May 2021

Did you not receive my second big answer.... I submitted and the work is lost...sometimes network is a Bad problem....

this is not a new journal, you have to adjust it with existing one. Abc is like this

ABC debtors a/c

To sales a/c

now you have to Change it to

XYZ ENDORSEEA/c

To ABC DEBTORS A/C

when XYZ makes the payment

BANK A/c

TO XYZ ENDORSEE A/C

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 18 May 2021

@ Ranjnish Goel entries are easy to understand. Follow it. Sry I got confused between Chirag and you and the guy taking money.

Ayush Lakhotia (43 Points)
Replied 13 June 2021

Please clear me that in which group Chirag will come in tally

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 13 June 2021

Since advances to employees accounting is possible, go to payments, choose expenses (advance on expenses or loans because Chirag will pay back and the c any is not paying his expenses) and Chirag employee name.

Ayush Lakhotia (43 Points)
Replied 13 June 2021

Chirag is not employe than which group we should put

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 13 June 2021

If Chirag is outsider, he is a debtor. Create him as a debtor with his details.

Ayush Lakhotia (43 Points)
Replied 13 June 2021

We can do direct payement to debtors Dr.chirag (debtors) cr.bank it can be entry

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 13 June 2021

In tally, loans and advances are given through payments voucher. This is complex. First you create Chirag as debtor, and

Chirag a/c

To bank a/c is correct

Ayush Lakhotia (43 Points)
Replied 13 June 2021

Chirag is debtor or loan and advanced which group

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 13 June 2021

Chirag is the only way in tally. If you use loans, there must be a reconciliation try between bank and Chirag and loans account. So it is double work. It will be GL work.