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Accounting treatment

06 February 2017

I have paid. 1000000 as advance to idea company and receive recharge balance of 1001100 including commisoon. please prescribe accounting entry of whole situation. I may be paid above 1 crore this year to the idea company.and have no record for sale to public because there are lot of transaction every day amounting to Rs 100 or less.

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4 Replies

Arvind H Modi (Student) (24 Points)
Replied 16 February 2017

Advance with idea co(as recharge)a/c dr.

Arvind H Modi (Student) (24 Points)
Replied 16 February 2017

To bank a/c
To commission suspense a/c

and at the year end commission will be w/off in P&L as income. (proportionatly as recharge done)
cash a/c dr.
To advance with idea co.
and at the year end the advance with the idea co. is shown as current asset

John Martin (2 Points)
Replied 18 February 2017

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