malarvannan (accounts executive) (133 Points)
09 June 2011Dear friends
For startup business expenses like purchase of computer,a/c & furniture.
As per my knowledge i did journal entries like
1. computer a/c,air conditioner a/c & furniture a/c dr
bank or cash a/c cr.
2. Bank a/c dr
directors loan a/c
My question is whether i need to create ledger for supplier for computer,a/c & furniture
& create purchase entry & do the payment entry agst purchase.
Pls guide me,its confusing.
regards
malarvannan.d
valji
(Accounts manager-MBA)
(2150 Points)
Replied 09 June 2011
it is better to create legger for computer ,furniture or any asset purchase so it helpful for preparing fixed asset register
for your knowlege also to whom the computer or any item is purchase you can directly found from your record ,save time to serach the record
Pawan Kr. Tomar
(CA)
(169 Points)
Replied 09 June 2011
In better accouning presentation and controling purpose voucher throug Journal entry only and then create a payment voucher. Payment entry shuld be made only after authentication on main invoice of purchase, it is easy to pass a Jouran entry first.
C.A. Sandeep Wawhal
(CA, PGDFM, BCom)
(1831 Points)
Replied 19 September 2011
As per ypur query, your last explaination that is...............
"My question is whether i need to create ledger for supplier for computer,a/c & furniture
& create purchase entry & do the payment entry agst purchase."
that is my suggation.............
Please create Vendors Ledger and use payment voucher for bank of cash payment.
Ateeq
(CA - Final)
(218 Points)
Replied 19 September 2011
Dear Malarvannan,
Name of the party will be involved in the cases where there is any credit purchase and in cash purchases or non-credit purchases name of the "Item" will be used. For this purpose : -
>you have to 1st create group called "Fixed Assets" and so on groups as per requirement.
>Then go for creating ledgers and mapping under the groups you have created earlier.
>Then pass entries, say for furniture purchases: -
1. Furniture A/c Dr.
To Cash/Bank. A/c
Or
If you prefer to Go through Journal entry then
2. Furniture A/c Dr.
To Party (Creditor) A/c
and at the time of making payment
Party (Creditor) A/c Dr.
To Bank/Cash A/c
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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