My client has a garment shop and he purchases goods from other company. In return, instead of paying for the purchases, the amount which he gets from credit card swipe (from his sale), it directly gets credited into company's account. and balance amount of purchases he pays from his bank.
What should be the journal entry for sale (cash and Credit card payment) and under which head should i place the Company. The company is my creditor but the sale amount is alos going to the company.
Sir,
Few questions for your client
1. How your credit card swipe amounts go to the other company's bank account directly?
2. Are you showing your sales in company's name?
Passing of accounting entries is easy. But your way of operations should be correct.
Aggarwal Sarawagi and Co
New Delhi
CA
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CAclubindia
