Dear Sir,
A person engaged in business of selling of agricultural product ( Wheet, paddy, Cotton) on commission basis ( arthia), i.e., purchase agricultural produce from farmers and sale it to market via KRISHI MANDI. sometimes he give
advance to farmers for their house hold activities. Now question suppose Mr. a is farmer in books of account under sundry debtor Dr.balance as on 31.03.20 is Rs.230000/- earlier last year 2019-20 We used manual books But in 2020-21 we used tally package so as on 31.03.21 Mr. a has Cr. balance is Rs. 119320/-so can I change group Debtor to creditors
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Commission agent Farmers balance
Replies (4)
Agriculture product dr 349320
to mr.a Cr 349320
to mr.a Cr 349320
Mr A is a debtor because you sold goods and he has to pay.
Mr A can become a Creditor if you purchased goods from him and you owe him money.
debtors cannot become creditors.
Sir
as suggested some one commission agent (Kacha arthia) works as difference from other works he is not maintaing trading account his Only income is commission on behalf agricultural product.so you can change debtor's and creditors as per your convenience.
as suggested some one commission agent (Kacha arthia) works as difference from other works he is not maintaing trading account his Only income is commission on behalf agricultural product.so you can change debtor's and creditors as per your convenience.
If they are receiving commission, it is from debtors account
if they are paying commission which is not the case here, it is to c account.
Im unsure about this and hope someone will get back to you who has experience in this sry.
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