Amit Mehra (Cost Accountant) (24 Points)
15 January 2014Hello to all..our company has organized 1 cricket tournament & for that we are collecting prize money as contribution from our suppliers. Can anybody please let me know about the entry coz our suppliers are telling us to adjust money from the amount due to us & for that they are ready to give us credit note. So in that case what will be the entry we need to pass. Thanks in advance.
Manish Kumar Sharma
(Accountant)
(35 Points)
Replied 16 January 2014
In my opinion treatment should be:
To book exp JV : Exp. A/c Dr To Cash/ Bank A/c Cr
To Adjust Supplier A/c : Creditors A/c Dr To Exp A/c Cr.
Mihir Manohar
(CA Final - Article Assistant)
(474 Points)
Replied 27 January 2014
I suppose,rather than crediting expense account in the second entry, fund collected account can even be credited.
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