Accounting entry for sim and recharge coupon distributor

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This query is : Resolved

Hetvi (Querist)

31 July 2014 eg. I have paid. 25000 as advance and receive recharge balance of 26000 and also get commission of rs 150 please prescribe accounting entry of whole situation.

Guest

Guest (Expert)

01 August 2014 i dont have much idea but stil want to have a try of this

in my view

1. if u had paid 25000 for the purchase , your purchase account will be dr. by it and cash will be credited

2. When u wil sale the recharge proceedings will be 26000 as u said and this will be ur sale

3. commission recived can b directly pass in books by crediting commission and dr, the party

if u have further doubts ask me

Message likes : 1 times

Hetvi

Hetvi (Querist)

02 August 2014 if we treat 25000 as purchase then may be our turnover goes at 40 to 50 lakhs and may attract sec 40AD and we will have to do audit as commision less than 8 %

Guest

Guest (Expert)

02 August 2014 yup absolutely u have to go through audit for that no doubt

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