Credit Card

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TAX consultant
240 Points Posted on 11 March 2020
Hi,

i have a card swiping machine in my retail shop. now i required money to get stock so i have swiped my friend's credit card.

what is the accounting of swiping amount, is it unsecured loan or sale?
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On 11 March 2020 at 21:52 Report
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This discussion explores the accounting treatment for using a friend's credit card to fund stock purchases for a retail shop. The user proposes debiting the bank account and bank charges, and crediting the friend's account as a current liability, assuming repayment within 12 months. They question accounting rules regarding the 12-month repayment period and whether the receipt is considered a sale if repayment is delayed.

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CA Student
15932 Points Posted on 12 March 2020

For swipe

Dr. Bank A/c
Dr. Bank Charges
Cr. Friend A/c (Current Liability)

- Assuming that he will be paid within 12 months

Rest purchase and payment entry to friend, as usual

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On 12 March 2020 at 12:31
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TAX consultant
240 Points Posted on 12 March 2020

It is any rules that we have to pay in 12 months?
 

 

 

And if i couldn't pay him in 12months so Receipt is considered as a sales. right?

 

 

 

 

 

 

 

thanks

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On 12 March 2020 at 17:19

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