Accounting treatment of retail sale

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2016 Greetings of the day Respected Professionals

I have one query in the matter to Retail sale Transaction. One of my client has started business on selling the goods on Flipkart. Now, he is enclosing Retail Invoice in the name of Buyer. but he did not get payment from that buyer, he gets it from Flipkart. Now how this accounting treatment has to be done.

Flipkart will pay him after charging his commission and all other Shipping charges.

So kindly help me with this matter. how i post entries in the books of accounts and settle the account of Flipkart

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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17 May 2016 Do entry and calculate tax as full rate tax on net value which was received by flipkart after deducting charges.

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 Dear Sir,

The dealer is making INVOICE in the name of customer directly. say ABC at his resiential address, not at FLIPKARTbut settlement is made by FLIPKART. that is what i am asking what is accounting treatment for the same

whether customer dr
to sales a/c

or Flipkart ...... Dr
to Sales a/c

give some clarification in the above said matter

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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18 May 2016 You have to do entry like this
At the time of sales
Party A/c Dr
To Sales A/c
After amount received by flipkart
Flipkart Dr
To Party A/c
After received amount from flipkart
Bank A/c Dr
To Flipkart
To Commission (Flipkart)

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 thanks you Sir for your valuable answer :)

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