Accounting entry

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Saroj Rana (Querist)
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14 January 2008 Respected seniors,
Plz help me regarding these questions,

My company (ABC ltd)purchase some gift items from XYZ Ltd and
1.Paid excess amount against the bill
2.The XYZ Ltd return the excess amount after some days and one more thing I don't want to maintain the the XYZ's ledger

So, what will be the accounting entry for these tranjections.

Needs only experts opinion
Thanks in advance.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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14 January 2008 EXCESS PAID IS TO DEBITED TO THE XYZ ON PAYMENT AND CREDITED TO XYZ WHEN RECD ........XYZ A/C SHALL GET SQUARED UP

Saroj Rana

Saroj Rana (Querist)
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15 January 2008 i need the complete journal in the books of ABC Ltd

Amit

Amit (Expert)
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15 January 2008 Following enteries will be passed in the books of ABC Ltd.

XYZ Ltd ------- Dr (amount excess paid)
Gift items -----Dr (cost of gift items)
To Cash/Bank

At the time of refund of money from XYZ

Cash/Bank ----------- Dr
To XYZ Ltd.

In case, you dont want to maintain XYZ's ledger, you can pass following enteries

Gift items ----- Dr (total amount paid)
To cash/Bank
At the time of recovery

Cash.Bank ------- Dr
To Gift Items

Saroj Rana

Saroj Rana (Querist)
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15 January 2008 thanks