Credit Card

Accounting Entries 1055 views 6 replies

Lalit Kumar Gupta

Job Worker

28 Points Posted on 02 November 2009

Please tell me proper group of bank credit card, whether it id bank od a/c or anything else.

Replies (6)

Sahil

CA FINAL

182 Points Posted on 02 November 2009

Originally posted by :Lalit Kumar Gupta
"	Please tell me proper group of bank credit card, whether it id bank od a/c or anything else.	"

IF IT IS FOR PERSONAL TRANSACTIONS THEN NO CASE IT WILL BE SHOWN IN BOOKS OF ACCOUNTS OF ASSESSEE.

HOWEVER IF IT IS FOR BUSINESS PURPOSES THEN BANK OD IS THE RIGHT OPTION.

Sunil

Trader

2616 Points Posted on 02 November 2009

If it is personal credit card, advise you to draw a personal balance sheet also and show the outstanding as well as reflect the transactions you pay at least. Remember that AIR is there for credit card transaction of 2.00 lakhs. Even if you spend for an employer, you should maintain the personal balance sheet in Tally. It will help you later on for any Section 143(2) notice as you will not waste time with AO on such details he may have already received from Card Company.

As you are usually not paying any interest, do not classify it as a loan. Classify it as Sundry Creditors. If you use the revolving loan sharking type of credit, then classify it as unsecured OD.

Monali Malkar

Account Assistant

29 Points Posted on 03 November 2009

Please tell me proper entry of import of service in tally.

Lalit Kumar Gupta

Job Worker

28 Points Posted on 13 November 2009

Originally posted by :Sahil
"	Thanks Shail, for short out my problem. Originally posted by :Lalit Kumar Gupta " Please tell me proper group of bank credit card, whether it id bank od a/c or anything else. " IF IT IS FOR PERSONAL TRANSACTIONS THEN NO CASE IT WILL BE SHOWN IN BOOKS OF ACCOUNTS OF ASSESSEE. HOWEVER IF IT IS FOR BUSINESS PURPOSES THEN BANK OD IS THE RIGHT OPTION.	"