Journal Entry

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DEVENDER THAKUR (Querist)
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08 June 2010 I am working in a jewellery showroom. We have taken membership in a jewellry show(IIJS- India International Jewellry Show) which will be held at Mumbai. We gave a cheque to The Gems & Jewellry Export Promotion Council with amount Rs. 1105/- as registration fee as IIJS visitor and a cheque of amout Rs 100000/- to All India Gems & Jewellery Trade Federation as the Lifetime Application Fee. Now I am a little bit about the entry. Under which head the entry to made? I have done as follows
I have grouped both the companies under Sundry Creditors. Then made the entry as:
Adv & Publicity A/c Dr.
To Creditors A/c

Then

Creditors A/c Dr.
To Bank A/c.
Is it Correct ? I am a little bit consused about this Plz help me.

Rahul Gupta

Rahul Gupta (Expert)
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08 June 2010 The entry is Ok but just instead of Creditors mark it as "Other Creditors" and group it under the miscellaneous creditors or miscellaneous account.

DEVENDER THAKUR

DEVENDER THAKUR (Querist)
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09 June 2010 Is it ok to debit the advertisment account in this entry? and plz tell me how to creat Other Creditors? Should it be grouped under creditors?

Rahul Gupta

Rahul Gupta (Expert)
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09 June 2010 For Debit expenses.....although advertisment is ok but my preference will be for Fees and Membership Account.

For creating other creditor, make the account unDer the Group Crediots and SUB GROUP, CREDITORS(EXPENSES).

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