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Auto Agency Accounts two wheelers

A/c entries 273 views 1 replies

karthikrao

B.com CS(inter) -ongoing

170 Points Joined September 2013

sir iam doing two wheelers registration for customers.while doing registration I put the entry in this manner.1.Registration tax a/c Dr Registration epayment cr in journal.2.Registration vehicle a/c Dr Reg tax a/c Dr cash a/c cr in journal. is this right.Further explain What is mean by Registration Tax and Epayment and Registration vehicle..thks

Replies (1)

CA Anand V Kabra

Author Teacher Mentor

584 Points Joined March 2012

A overview of journal entries may help you:

When Two Wheeler sold
Customer's Account Dr 55000
  To Sales A/c 50000
  To Registration Exps / RTO Charges 3000
  To Insurance Exps. 2000
When Customer Setteles the payment:
Cash / Bank A/c Dr 55000
To Customer A/c 55000
RTO & Insurance is being incurred by Customer, but for compling Laws Regarding Insurance & RTO & Administration efficiency, we collect the respect amounts on every sales & remitt it to RTO & Insurance Agency/ Co.
The transaction is squared off by following entry:
Isurance A/c Dr 2000
RTO A/c Dr 3000
To Epayment / Bank / Cash A/c 5000