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Please tell me on accounting

vivek (student) (35 Points)

22 December 2011

Dear Friends ,

please help me on the following Situation regarding credit card sales accounting.....

Suppose there are 2 Shops.... A & B..... we are doing accounting of A.

A does not have credit card Swipe Machine.... But A has Control over B's Swipe Machine and B's Machine is at A's place.

So Credit Sales of both Shops are Swiped at B's machine.....after Swiping B pays Cash to A against Swiping and A pays to B after deducting credit card sales of A.

so please help me how should i do accounting of above transactions...i.e sales entries and transactions of receipt and payment from/to B.

Regards ,

Vivek.

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7 Replies

(Guest)

Mai toh A n B me hi confuse ho gai........

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Vineet Kumar Sharma (Chartered Accountant) (316 Points)
Replied 22 December 2011

1. In the Books of A:-

a. at the time of Sales made by A, you may pass:-

----- i. Customer A/c ....Dr. <Sales Amount+VAT>

To Sales A/c

To Output Vat A/c

(The above entry signifies that Sales has been made by M/s A)

ii. At the end of Day:-

B's A/c .....Dr. <Total of Day's Sale>

To Customer A/c

(This entry signifies that such an amount is recoverable from M/s B)

b. At the time of recovery of Cash from B:-

Cash A/c / Bank A/c .....Dr. <Total Amount receovered for that day in Cash>

Bank Charges A/c ......Dr. <Charges for Swipe out of Card recovered by bank from B>

To B's A/c

I did not understand since Cr. Card Machine is of M/s B and the same amount is received by B, then why A is require to pay B. As u have written "A pays to B after deducting credit card sales of A."

1 Like

vivek (student) (35 Points)
Replied 22 December 2011

@ Vineet in this case at the time of swiping , B's Debit card is with A. Sorry i didnt mentioned this... so A with withdraws money from B's A/c and pays the cash.....

thankyou...