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Sir, please advise what can be the consequenses in bill is made in one person name and payment made other?

Ashim kr Ray (social service) (1695 Points)

12 June 2017

Sir, A person " x" purchase good from company for resell purpose to "Y". Now payment for such good is directly paid by "Y" to company instead of giving to "X". And "Y" only pass the profit of good to "X" in cash. At the time of making entry in tally Purchase amount is more than payment of "X". can it be possible to show that payment is made from "Y's" bank account?

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15 Replies

(Guest)

Books of X:

on purchase:

Purchases A/c Dr.

To Company A/c

on sale:

Y A/c Dr.

To Sales A/c

on receipt:

Company A/c Dr.

Bank A/c Dr.

To Y A/c

1 Like

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Ashim kr Ray (social service) (1695 Points)
Replied 12 June 2017

Sir,

I got problem with your receipt one as payment is not been made from purchaser Acoount i.e "X" then how this Bank A/c will be debited in Books of "X"

(Guest)

Debited with the receipt of profit part, received from Y.

1 Like

(Guest)

Books of X:

Company A/c Dr. (amount paid by Y to Company)

Bank A/c Dr. (profit amount received from Y)

To Y A/c (total amount paid by Y)

1 Like

Ashim kr Ray (social service) (1695 Points)
Replied 13 June 2017

Sir.

Is this receipt entry has to been shown in journal entries in tally.

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(Guest)

OK, split the entry. One journal:

Co. account Dr.

To Y

one receipt:

Bank account Dr.

To Y

Ashim kr Ray (social service) (1695 Points)
Replied 13 June 2017

Sir,

one receipt:

Bank account Dr.

To Y
Here in the books of "X" which bank account has to be given. As payment is made by "Y" from his account.

Ashim kr Ray (social service) (1695 Points)
Replied 13 June 2017

Sir,

one receipt:

Bank account Dr.

To Y
Here in the books of "X" which bank account has to be given. As payment is made by "Y" from his account.

(Guest)

Bank account of X, if credited in his bank or Cash account, if cash is paid by Y to X.

1 Like

Ashim kr Ray (social service) (1695 Points)
Replied 13 June 2017

Sir,

That is the only problem here payment is made by the buyer to company , instead of paying to seller i.e "Y" is the buyer paid to company from his own account ,instead of paying to "X".