Cash purchase/sale of other than fixed assets

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2012 how to record cash purchase and cash sales in purchase and sales register if needed also I want to know if this purchase or sale made through one of aperson advance account that is when he settling his account with cash sales or purchase we need the person account should be decresed for purchase expense and also that purchase in the respective registers

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

27 November 2012 1. Cash Purchase:

Purchases A/c Dr
To Cash A/c
(Please note that if the amount of single invoice exceeds Rs. 20,000 the whole expense shall be disallowed)

2. Cash Sales:

Cash A/c Dr
To Sales

3. Advance and then adjustment

Mr. X
To Cash
(Advance given)

Purchase A/c Dr
To Mr. X

Hari Beldona

Hari Beldona (Expert)

27 November 2012 Treat cash purchase and cash sales as credit purchase and credit sales respectively. The party will be shown in debtors ledger and creditors ledger. Later on pass the following entries
1.For cash Sales
Cash A/c .............Dr xxx
To Party's A/c........... xxx

2.For cash Purchase
Party's A/c ..........Dr xxx
To Cash A/c ............ xxx

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