Entry for Custom Housing Agent

Hi,

Could you tell me the entry to be passed when we receive a bill from Custom Housing Agent (CHA) with GST.

Replies (4)
Quick Summary
This discussion explains the correct accounting entries for bills received from a Custom Housing Agent (CHA) that include GST. It provides specific journal entries for both commission and service charges, detailing how to debit the respective expense accounts and input GST, and credit the Custom Housing Agent account. The post also clarifies how to record the subsequent payment to the agent and notes that the CHA should be listed under sundry creditors on the balance sheet.

What agent charged in the bill ?. is it commission or Services Charges..

For both commission and service charge

1) For  Commission entry will be 

Commission             A/c       Dr 

CGST                      A/c        Dr 

SGST                      A/c        Dr 

To  Custom  Housing  Agent        A/c     Cr 

(  Booking  of  Commission  payable  entry ) 

 

2) For  services charges entry will be 

Services Charges    A/c     Dr 

CGST                     A/c       Dr 

SGST                     A/c       Dr 

To  Custom  Housing  Agents        A/c    Cr 

(  Booking  of  services charges  payable ) 

 

When you  pay   

Custom  Housing  Agent        A/c    Dr 

To  Bank                                 A/c    Cr 

(  payment  of  commission )  similarly you  pass entry  for payment of services charges . 

Custom Housing Agent under  sundry Creditor , Liability side  Balance sheet .  

Thanks a lot! Appreciated!! :-)

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