What is the accounting treatment for excessive payment
Joseph Samuel (Accountant) (75 Points)
02 January 2020Joseph Samuel (Accountant) (75 Points)
02 January 2020
RAJA P M
("Do the Right Thing...!!!")
(128047 Points)
Replied 02 January 2020
prasad Nilugal
( GST Practitioner & Accounts )
(14608 Points)
Replied 02 January 2020
You pass following entries in the Books of Accounts
1) you first entry for Sales
Sundry Debtors A/c DR 2,25,725 .00
To Sales A/c CR 2,25,275 .00
( Booking of sales entry )
2) When you received excess payment of Rs 5/- from Debtors entry will be
Bank A/c DR 2, 25, 730 .00
To Sundry Debtors A/c CR 2 , 25, 725 .00
To Mics Income A/c CR 5 .00
( Being payment received )
Note - Mics Income will be under Indirect Income ( Profit & Loss A/C )
RAJA P M
("Do the Right Thing...!!!")
(128047 Points)
Replied 02 January 2020
Originally posted by : prasad Nilugal | ||
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You pass following entries in the Books of Accounts 1) you first entry for Sales Sundry Debtors A/c DR 2,25,725 .00 To Sales A/c CR 2,25,275 .00 ( Booking of sales entry ) 2) When you received excess payment of Rs 5/- from Debtors entry will be Bank A/c DR 2, 25, 730 .00 To Sundry Debtors A/c CR 2 , 25, 725 .00 To Mics Income A/c CR 5 .00 ( Being payment received ) Note - Mics Income will be under Indirect Income ( Profit & Loss A/C ) |
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VERY WELL DEAR...
Joseph Samuel
(Accountant)
(75 Points)
Replied 03 January 2020
Well explanation to the core. Thank you so much. But sorry for not asking this question before, if the payment is less by Rs. 2/- or something then what should to do? can we debit the mis. income? That is:
Bank A/C 'Dr' 2,00,000
Mis. Income A/C 'Dr' 2
To Sundry Debtor A/C 2,00,002
Can I pass a journal entry like this? or does it require different approach?
prasad Nilugal
( GST Practitioner & Accounts )
(14608 Points)
Replied 03 January 2020
Answer to your 2nd query .
When payment is less 2/- Rs it will be loss for business
So J.E will be
Bank A/c Dr 1,99,998.00
Bad debts A/c Dr 2.00
To Sundry Debtors A/c Cr 2,00,000 .00
(Being payment received )
Bad debts will be under Indirect Expense (profit & Loss A/C )
Rs 2/- amount is so small that you can also treat as Mics ,Loss A/c also .
Joseph Samuel
(Accountant)
(75 Points)
Replied 06 January 2020
Ok. Thank you so much for the reply sir.
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