roopa (b.com) (364 Points)
10 June 2017
roopa
(b.com)
(364 Points)
Replied 10 June 2017
Thanks manish for reply .
But will this entry not have double effect on creditor .
ACCOUNTANT
(Student)
(559 Points)
Replied 10 June 2017
roopa
(b.com)
(364 Points)
Replied 10 June 2017
what actually happens is client makes bluk purchase every month . and while making paymnet they cammunicate and pay net purchase balance .
so there is no actual cash payment for freight .
while entering credit purchase
purchase A/c ... dr
To creditor
BUT AT THE TIME OF MAKING PAYMENMT HOW TO ADJUST BALANCE FREIGHT AMT
Am still not getting it
roopa
(b.com)
(364 Points)
Replied 10 June 2017
there should be one credit entry and one debit entry in the creditor ledger .
can it be like this ? Will this be correct
At the time of purchase
purchase A/c.... Dr
To creditor full amount of purchase which includes freight amt
At the time of payment when freight amt is deducted and only net amt of purchase is paid
creditor A/c ..... dr
To cash/bank( only purchase amt)
To freight inward (as part of freight inward is born by seller )
BECAUSE PURCHASE IS SHOWN IN FULL . WE CANT SHOW BIFURCATION IN PURCHASE AS PURCHASE IS MADE IN BULK . AND DIFFICULT BIFURCATE .
Please guide me if above entries are wrong
roopa
(b.com)
(364 Points)
Replied 10 June 2017
Hi manish . I cant bifurcate in total purchase amt . As frieght amt is not constant .
so purchase should be shown including freight amt only .
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 16 June 2017
You just made a journal entry at the time paid...
CAclubindia
