Professional income

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This query is : Resolved

Minhaj Najir Bhopa (Querist)

28 July 2018 My Client is in the Business of Beauty Parlor. They purchase Parlor Materials for Consumption and provide parlor Services.Whether I Saw Materials as purchase or as Direct expense and Income as Sales or as Direct income?
Please Reply me
Thank You

RAJA P M

RAJA P M (Expert)

28 July 2018 Services will be accounted in Direct Income... Products selling is under Sales head... If selling products will be accounted under Purchase head at the time of purchasing... In case some of the material used for the service then it will be counted as Consumable for that service....

Thiyagarajan Kandasamy

Thiyagarajan Kandasamy (Expert)

04 August 2018 actually it was a service oriented business, so purchases of beauty items you can show in their P&L as purchases, and no mean that sales in sense which they providing services to customers so it will be a service receipt as main income

RAJA P M

RAJA P M (Expert)

04 August 2018 Mr. Kandasamy.,

What You mean sense in Your reply...?

RAJA P M

RAJA P M (Expert)

04 August 2018 If Customer will come for facial with cream that's service. The same customs will buy the product it's sales. Sale is selling goods or items... Service is not a good or Items...

Thiyagarajan Kandasamy

Thiyagarajan Kandasamy (Expert)

04 August 2018 I mean that your are purely service oriented business so here you raise the invoice for that service credit this service invoice at the time of accounting,
like
Income from Beauty service A/c Cr
To Bank / Cash A/c Dr

Thiyagarajan Kandasamy

Thiyagarajan Kandasamy (Expert)

04 August 2018 ya sale of your beauty items come under sales that I will know, but main business activity is parlor only know...

RAJA P M

RAJA P M (Expert)

04 August 2018 Purely service means without any products or items... Only physical output is called service... Not with goods...

RAJA P M

RAJA P M (Expert)

04 August 2018 Anything or anyway or anyhow use/write your text with sensible words without loose words..

Thiyagarajan Kandasamy

Thiyagarajan Kandasamy (Expert)

04 August 2018 oh no ji I mean that sense is a accounting word I think you wrongly understood