Accounting query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2014 Hi, we are in a construction company due to fund problem we have borrowed money from the vendor it means that payment are done by vendor (money giver) to company vendor which is o/s for payable(actual vendor as per our books). kindly advice as this is correct & if correct kindly guide what entry to be account.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 January 2014 nothing wrong in it...create a loan a/c in the name of the money giver...whenever the money giver makes payment on your behalf, credit this account and debit the party account to whom the payment is made.

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