Balance sheet of distributor of recharge coupons and sim car

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How to prepare balance sheet of a wholesale distributor of recharge coupons and SIM card? whether sale, purchase and stock has to be considered or only gross receipts because they are commission agents? whether trading and profit and loss account has to be prepared or Income and Expenditure?

                                                             

Replies (7)
Record only commission income in profit and loss account. Record expenses. View 26AS for commission income accrued. So may be Debtors will exist. Record mobile as assets and charge depreciation. Record furniture fixture. Finalise BS P/L and file ITR. Do bank passbook entry in tally. You will understand clearly. Clear all suspense.

if we do bank paas book entry then problem arise. All the payment made to the company is through NEFT which cross rs. 1 cr.will it create any problem?

Whateve rany is is against the sale effected on their behalf The amount remitted is the amount of sale proceeds. So effectively the purchase and sale amount is same. Eg. Coupons received of Rs.100 and amount of coupons sold Rs. 80. So entries as follows. Dr Goods received from Principal 100 Cr Principal ( Mobile Operator ) . 100 Dr Cash 80 Cr Goods received from principal. 80 Dr Principal 80 Cr Cash/Bank 80 So effectively draft balance sheet will show Rs. 20 payable to principal and Rs. 20 as stock of goods. Then incorporate commission income from 26AS. Option 2: if it is purchase sale transaction and not principal agent basis then do entry of purchase sales bill and make P/L and then incorporate commission income.
Whatever amount is remitted is against the sale effected. * correction *

dear raj c doshi,

 as u said if we take 26as as commison that is not their real commisiion actual is less than dat, because they have to pay in that their amount some amount to retailers . on behalf of retailers sim companies deduct tds on distributors . tds deducted includes retailers commission. then how to arrive real commission

 

dear raj c doshi,

 as u said if we take 26as as commison that is not their real commisiion actual is less than dat, because they have to pay in that their amount some amount to retailers . on behalf of retailers sim companies deduct tds on distributors . tds deducted includes retailers commission. then how to arrive real commission

 

dear raj c doshi,

 as u said if we take 26as as commison that is not their real commisiion actual is less than dat, because they have to pay in that their amount some amount to retailers . on behalf of retailers sim companies deduct tds on distributors . tds deducted includes retailers commission. then how to arrive real commission

 


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