Accounting

This query is : Resolved

rishab (Querist)
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01 October 2012

Here I am explaining our transaction.

1. We will raise our P.O. to Agent / Dealer (ABC)

2. Agent / Dealer (ABC) will raise P.O. to Manufacturer / Mill (XYZ)

3. Manufacturer / Mill will dispatch the materials to us along with Excise Invoice in our name as per our P.O. Specification Mentioning that " PAYMENT TO BE MADE BY " M/s Agent / Dealer (ABC)

Our Doubts are

1. To whom we have to make payment? to Manufacturer / Mill (ZYZ) or to Agent / Dealer (ABC)

2. If we paid to Agent / Dealer (ABC) is there any problem ? from any of the department ( Income Tax, or Sales Tax (VAT) or any) or from manufacturer / mill (XYZ)

How we have to account it in our books of accounts ?

1. Purchase from manufacturer's name Since Bill will be in his name (Ledger will be in manufacturer;s Name)

2. While making payment shall we create a ledger in the name of Agent / Dealer or we should show payment entry to Manufacturer by narrating that paid to Agent (ABC) on behalf of Manufacturer (XYZ)

Amol S Joglekar

Amol S Joglekar (Expert)
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01 October 2012 you are appointed agent for the whole transaction, it seems. So you need to do the business with AGENT. Tally has facility to have sub ledger under the main ledger of AGENT. If you want , use that otherwise you are responsible for maintaining the account of AGENT only. The excise invoice is only for the purpose of claiming set off, if any. It is a stappled/ attached document to the bill of your agent.

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