Dear sir,
One of our client doing Consignment business. He is the principal and sending goods to the agent outside the state. the agent is only selling the goods at the price as per stock transfer done. The principal is collecting sales value from the parties to whom the agent made sales. and he giving to the agent the VAT amount and commission . what are the entries to make in the books of principal
when the principal collects the amount of sale made then the entry would be
creditors
to cash / bank
and but why the principal is paying VAT to agent, bcz agent cannot show the sale made on behalf of principal as sales in his book
Dear sir,
i have one client , who in doing business in C & F, then how recognised revenue in the books of clients.
sales, purcheses & stock have to shown in P & L A/c or not./directaly commission shown in P&L A/c.
CAclubindia
