Accounting entries

DEAR SIR/MADAM,

IF PAID BY THIRD PARTY FOR COMPANY BRANCH AS CASH PAYMENT. WHAT IS ENTRY.

REGARDS 

GANESH KUMAR KASHYAP

ACCOUNTS EXEC.

Replies (12)

In the books of branch :

Expense a/c  / Creditors a/c Dr.

   To Third Party

for eg: telephone bill (BSNL) paid by Mr. X

Telephone Bill Dr.

     To BSNL

BSNL            Dr.

      To Mr. X

 

 

On refund of said amount to Mr.X

Mr. X a/c        Dr.

    To Cash/ Bank

 

if not paid , it remains as a liability

 

Good sold rs 1000 to A on trade discount 10%

A's  A/c    Dr.  900.00    

To Sales A/c      900.00  

(Being goods sold to Mr. A)

A's A/c         Dr.  900

Discount A/c Dr.  100

      To Sales A/c          1000

Dear sir trade discout is given
Rakesh sir you are right
A's A/C............DR. 900 To Sales A/C 900 (Being goods sold to A on trade discount @ 10%) Reason : A is a debtor i.e., Asset. Asset has a debit balance. In this transaction Asset is increases. so it is debited. Sales is a Income and income has a credit balance. So it is credited. Trade discount is not separately shown in the books of Accounts.
Well discribed Trade discount will never shown in the books of accounts.

Mr roshan paul trade dicount could not be shown while journilising the entry, it is cash dicount which reflectsin accounting process, keep this update in your pattern

thanks

thanks

any time Mr Roshan

wish you good luck for your future

keep in touch

thanks

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