Accounting entry

IPCC 246 views 2 replies
Dear friends I work in a dealership of M/s sany heavy industry. I have small query regarding the payment made to my manufacturer. As a dealer we deals with excavator business and the smallest model costs Rs. 2500000/-. Most our customer purchases machines by availing finance from various financiers. Our problem is these financiers instead of making payments to us make payments directly to our principal and these were made mostly on a credit period of 45 days. As payments are not made to us we need to make an adjustment entry to close creditor(Sany) and customer account. My question is when should I make this adjustment entry whether on the date the financier promised the payment or after 45 days of credit period.
Replies (2)
You have to enquire about the actual date of payment and pass the entry on that date.
Thank you for your valuable response


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