Accounting Treatment

HELLO FRIENDS, PLS. TEEL ME MY CLIENT DEALS WITH AN IMMIGRATION BUSINESS IN WHICH HE RECEIVES CASH FROM THE CLIENTS IN LAKHS ALSO AND DEPOSITED THE NEXT DAY INTO HIS BANK A/C AND AFTERWARD IT ISSUES CHEQUES FOR IMMIGRATION OF LESSER AMT.

SUPPOSE HE RECEIVES100000 CASH FROM CLIENT AND DEPOSITED INTO THE BANK NEXT DAY AND AFTER A WEEEK HE DRAWS A CHEQUE FOR FEES FROM HIS ACCOUNT OF90,000.

AND THE BALANCE IS HIS INCOME.

PLS. TELL ME THE ACCOUNTING TREATMENT AND PLS. TELL IS THIS PRACTICE OK.

WHETHER HE CONTINUES TO RECEIVE CASH FROM HIS CLIENTS. OR I ASK HIM TO SAY THE CLIENT TO DEPOSI DIRECTLY INTO HIS BANK ACCOUNT AND HE MAKES A DD  RATHER THAN ISSUING CHEQUE AND PROVIDE THE BILL FOR ONLY SERVICE CHARGES TO HIS CLIENT.

PLS. HELP ME.

Replies (8)

I THINK THE AMT RECEIVED SHOULD BE TREATED AS RECEIPTA AND PAYMENT SHOULD BE TREATED AS PAYNENTS 

 

BUT WAIT FOR THE REPLIES FROM EXPERTS

PLZ. EXPERTS RECTIFY ME IF I AM WRONG

ask him to preserve the documents of receipt and payment, without which the gross receipt wouod get charged as income

IS HE SHOW THE NET INCOME IN P/L ACCOUNT OR THE TOTAL GROSS RECEIPTES. IF HE SHOWS THE TOTAL GROSS RECEIPTS HE COMES UNDER THE SERVICE TAX.

PLS. HELP ME.

CAN HE TAKES CASH FROM THE CLIENT

AND FOR WHICH AMT RECEIPT SHOULD BE GIVEN TO CLIENT.

PLS. HELP ME.

I AM IN GREAT NEED.

IS THIS TREATMENT CORRECT

CASH A/C -100000

TO CUSTOMER -100000

BANK A/C -100000

TO CASH A/C -100000

CUSTOMER A/C -100000

TO BANK A/C -90000

TO FEES -10000

PLS. REPLY ANYBODY.

IT IS VERY URGENT.

ANYBODY REPLY.

PLS. REPLY ANYBODY

I AM IN GREAT NEED.

It is always advisable to avoid cash transactions. Your's clients transactions itself raises so many questions. But however the accounting part & entries whatever given above for the nature of transaction explained is correct. Because of lack of clarity in the question it is very difficult to answer.

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