Entry Confused

DEBTOR A/C     DR      10000

     TO ADAT COMMISSION A/C      1000

     TO FRIEGHT AND OCTROI A/C  1000

     TO CASH  A/C                          8000

(if you are crediting cash a/c - it must be payment or purchase entry)

(if you are debiting debor and crediting sales a/c - it must be a sale entry)

if you are debiting debtor a/c and crediting cash a/c - this is just a payment entry)

please be specific what you wanna ask..

 Then we pass one more entry i.e

By bank or cash a/c dr

       To Debtor A/c

Means amount received

Also

Adat commission is created under head Direct Income

and

Hamali and frieght under Direct expenses

canyou please clarify the transaction from the beginning so that i can reply or explain you on this. because it seems that you are paying to a debtor and also its not a return of advance transaction. so please clarify in detail. the question itself is not clear. thank you.

i agree with ca amol kabra

please clarify extact trasaction for understand your problem.

in accounting entry u should have information about  exact transaction.then you would be passed correct journal entry

In place of DEBTOR it should be CONSIGNOR. Then the transaction will be that of recovery of expenses incurred on behalf of Consignor, receipt of Adat Commission and cash payment of proceeds from sales on behalf of consignor.

In nutshell, it is a composite entry of said three transactions.

I think entry says as follows. (Here Consignee means Purcahser and Consignor means Seller)

1) You have credited ADAT COMMISSION A/c. Of course it's your business income and recoverable from consignee, hence his/her account will be debited by the commission amt.

2) You have credited FRIEGHT AND OCTROI A/C. This suggests that when you received goods from consignor you have to pay freight to unload goods to your location (i.e. the person who received ADAT commission) on behalf of consignee. At the time of payment of freight, it is debited to that account. Hence to recover it from consignee, reversal entry by crediting this account has been passed.

3) You have credited CASH A/C. This means that you have made payment. This suggest that you have made payment in cash on behalf of consignee on any matter and it is not your expense or liability which you have paid. It is recoverable from consignee. Hence to recover it from consignee, his/her account debited and CASH A/C credited.

SO TOTAL AMT. RECOVERABLE IS DEBITED AND INCOME, EXPENSE REVERSAL AND AMT. PAID ON-BEHALF WHICH IS RECOVERABLE IS CREDITED.

I understand the transaction in this manner.

I agree with Gaurav. Acc to him,You are a purchase Agent. Purchase agent (here) purchases goods on behalf of his principal (here debtor). He also charges commission on purchases . Lastly Freight & octroi is paid on the delivery of goods. At time of making payment he passes entry for commission receivable,Freight & Octroi receivable. While in case of payment he directly debit principal's A/c (Instead of Stock A/c).

 i agree

Gd one gaurav