Chinmay
(Accounts Professional)
(356 Points)
Replied 10 December 2021
The credit card seems to be a secured loan from the bank.
1) When you pay amount from Credit Card
Expenses / Vendor A/c Dr...
To Credit Card A/c
2) When you received amount or paid by bank to Credit Card
Credit Card A/c Sr...
To Bank A/c
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 11 December 2021
Tanuj Chandra Saxenaa
(Company Secretary)
(7075 Points)
Replied 11 December 2021
Ayush
(Executive )
(6760 Points)
Replied 18 October 2023
When a Purchase is Made
Expenses a/c
To Credit Card a/c
When the Payment is Received from the Credit Card Company
Credit Card a/c
To bank a/c
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 20 October 2023
It's proprietor credit card, it's not applicable to the business entity concept. If it's a credit card to do business
Create a ledger credit card with bank name and last 4 digits.
The ledger must be created under bank accounts but not under occ or od as no collateral is required and the credit card limit can be put as the opening balance. It's a current asset
Then
Dr. Revenue or capital expenses
Cr. Credit card
When you repay it
Dr. Credit card
Cr. Bank
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 20 October 2023
CAclubindia
