In accounting language we use that "Our A/c is credited by them"
do we then mean that opposite party has credited our firm?
CA. Shwetank Vats
(Chartered Accountant)
(653 Points)
Replied 06 September 2009
Yes
If "A" issue a cheque to "B"
than A debit of B account in self (A) book
and B Credit of A account in self (B) book
Uday Kanth
(Consultant)
(71 Points)
Replied 09 September 2009
when you hear some one saying " our account is credited by them" , then you are over hearing, a team which either controls the receivables/payables or team which details with bank reconcilations.
When some one says our account is credited, that means you have an information or an intimation from a third party that they had marked a credit and in our books we need to make a corresponding debit. Proper references for the transactions to be maintained which can come handy while doing recon in a future date
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