Cash on delivery

This query is : Resolved

Mahesh (Querist)
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06 June 2019 Dear Sir, one of my client is providing delivery service for E Commerce operator (Amazon) and Collecting Cash from Customer as transaction type is COD, Then depositing cash into his Current account and later transferring to e commerce operator, Now my query is how to treat that Cash Deposit and Transferring the amount to e commerce operator in accounting and GST.

Hope somebody will help regards my query.

Amol S Joglekar

Amol S Joglekar (Expert)
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07 June 2019 you are depositing cash into the current account of supplier. Then what is the problem?

RONAK DARJI

RONAK DARJI (Expert)
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07 June 2019 Mr.Mahesh,

The Probable Answer from my point of view is as under.

For Accounting: You shall pass journal entry like this,
1.Bank a/c Dr xx
To Cash a.c xx

2.Party a.c Dr xxx
To Bank a/c xxx

This way u can prepare accounts and pass journal entry of your client.

For GST: you have to evaluate only the income received of commission from Amazon, and need to pay GST (18%) on the amount of receipt.

Regards,
Ronak Darji.

Amol S Joglekar

Amol S Joglekar (Expert)
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07 June 2019 @Ronak
Client of Mahesh is acting as AGENT of Amazon.
The accounting entries are to be passed accordingly.

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