Accounting entries

Dear all,

                  We purchase Tiles through One of the Broker and Bill in the Co Name Radha Krishna Granites. But we issued the cheque in the name of Broker. Now which entries to be passed for the Payment and also purchase............

Replies (4)

Dear friend

We can make entries in to 2 types 1) In Radha Krishna Granites ledger a/c you can mention that the chq has been issued in fvr of the Broker (name) in narration or 2) You can edit the Ledger a./c name of Radha Krishna Granites as Radha Krishna Granites/Briker (name) A/c to identify in future.

Dear Vijay ,

 

The entry should be

 

Tiles A/c Dr

   To Bank A/c (Radhakrishna Granites...)

(Purchase of Tiles from Radhakrishna granites and issued cheque in favour of agent/broker of radhakrishna granites)

 

Originally posted by : N. SREENIVAAS

Dear Vijay ,

 

The entry should be

 

Tiles A/c Dr

   To Bank A/c (Radhakrishna Granites...)

(Purchase of Tiles from Radhakrishna granites and issued cheque in favour of agent/broker of radhakrishna granites)

Dear Vijaya,

 

For booking purchase of Tiles

 

 

Tiles a/c                        Dr

      To Tiles seller’s a/c

 

 

You’ve wrongly done payment to broker instead of the tiles seller

 

If the brokerage is payable to the broker then you can adjust the said amt. in his brokerage or otherwise you can ask him to return the amt by cheque. ( Considering the TDS liability )

 

Then for payment

 

Tiles seller’s a/c          Dr

        To Bank

 

yes vaishali...you are right

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