Doubt
This query is : Resolved
26 July 2016
When should we make liability entries in case of expenses. Is it necessary for cash payments
Amol S Joglekar
(Expert)
26 July 2016
When the liability has ARISEN, we should make the entry for the same....
What is your query about cash payment, I am getting it...can you please elaborate with some numerical example?
What is your query about cash payment, I am getting it...can you please elaborate with some numerical example?
27 July 2016
In my table i got a invoice of carriage inward which is already paid in cash
Amol S Joglekar
(Expert)
27 July 2016
this you can pass through PAYMENT voucher.
Debit Carriage Inward
Credit Cash
Debit Carriage Inward
Credit Cash
27 July 2016
Can you pls explain me in which scenario liability entry is required
Amol S Joglekar
(Expert)
27 July 2016
simple.....when liability is created, then the entry is passed.
Say goods purchased on CREDIT from say TDH
Debit Goods
Credit TDH.
Say goods purchased on CREDIT from say TDH
Debit Goods
Credit TDH.
Amol S Joglekar
(Expert)
27 July 2016
if it is purchased on credit.....then
debit...stationery
credit... supplier (Creditor for stationery)
debit...stationery
credit... supplier (Creditor for stationery)
Amol S Joglekar
(Expert)
27 July 2016
if it is paid in cash/ through cheque, then
debit concerned expenses....gift or stationery or festival bonus...as the case may be
credit cash/ bank.... as the case may be
debit concerned expenses....gift or stationery or festival bonus...as the case may be
credit cash/ bank.... as the case may be
27 July 2016
Thank you, now i can go ahead
I was using sap up to now. Now it is a customized software thats why just confirming.thanks a lot
Amol S Joglekar
(Expert)
27 July 2016
just to stretch the concept to far end......
think of a situation where in the joint meeting of management and workers, it is resolved and agreed to pay festival bonus.... then on the same day, one may pass the entry
debit festival bonus
credit festival bonus payable.... ....(Liability is thus created)
And when in due course, the actual payment is made
debit Festival bonus payable
credit Cash/Bank...as the case may be
think of a situation where in the joint meeting of management and workers, it is resolved and agreed to pay festival bonus.... then on the same day, one may pass the entry
debit festival bonus
credit festival bonus payable.... ....(Liability is thus created)
And when in due course, the actual payment is made
debit Festival bonus payable
credit Cash/Bank...as the case may be
Amol S Joglekar
(Expert)
27 July 2016
you are most welcome.
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