Entry for payment sent through paypal in tally

Can anyone please help on how to make voucher entry for above transaction in Tally?

It Doesn't matter what it shows in your bank statement. Record transaction as it is

2 entries to be passed

1) Paypal a/c DR

to ICICI A/c

2)Mike A/c Dr 

To Paypal a/c

Thank you so much Mitesh Sir for answering.

Can I do one extra Journal entry (beside the two which you have mentioned above) in Tally for Mike. For example, here I sent payment to Mike because I purchased a website from him, so can I also add this entry as no. 3 entry?

3). Websites A/c Dr.

To Mike A/c

(also, what should be the sequence of the entry).....i would appreciate your reply!

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I wanted to know if I can also remove paypal entry completely...just one entry for above double entry which you have mentioned i.e.

Mike A/c Dr.

To ICICI A/c

(Being payment sent to Mike via paypal).

Adding paypal in narration only. Is this also okay?

website  Entry is Necesary to book Expense.

Paypal a/c i suggested so that in future you can come to know how payment has been routed through.

Thank you Mitesh ji again for contributing some of your time and replying to my query.

I am currently doing entry in following sequence:

As Journal Entry

1. Websites A/c Dr. (as indrect/direct expenses)

To Mike A/c (as sundry creditors)

As Journal Entry

2. Mike A/c Dr.

To Paypal (as indrect expenses)

As Payment Entry

3. Paypal A/c Dr.

To ICICI Bank A/c

Have I created the accounts under correct groups (indirect expense/sundry creditors/etc.)?

Also, is the sequence (1, 2 & 3) correct?

In these kind of entry "paypal a/c" will not show anywhere in P&L account, Trial Balance or B/S because it will always tally Dr. & Cr side. Am I correct?

In another instance, when I receive payment through paypal, paypal deducts some charges for which I created an "indirect expenses" account named "Paypal Charges A/c". I hope that is okay.

Thank you for your time!

Sequence Would be 1,3,2.

Thank you Mitesh Sir for your reply. I really apprecaite it.

If you have some time, please do let me know if the accounts were created under correct groups.

Yup ledger are created under correct group.

Thank you Mitesh Sir!

Always welcome

Mitesh ji, In case of receipt of payment via paypal for sell of services, what should be the voucher entry. (In case of funds received by paypal; paypal deducts some fees - their own service charges + USD to INR converstion charges). So, for sell of web services I am currently doing following entries.

As Journal Entry

1. John A/c Dr. 100 (as sundry debtors)

To Web Services      100 (as direct income)

As Journal Entry

2. Paypal A/c Dr. 92 (indirect expenses)

Paypal Charges A/c Dr.  8 (indrect expenses)

To John A/c                100

As Receipt Entry

3. Bank A/c Dr. 92

To Paypal A/c    92

1. What whould be the sequence of voucher entry?

2. I am confused in which group should I include "paypal a/c". Is indirect expenses right group for it?

3. I was thinking if I should avoid second number entry of "paypal a/c", so it would be something like:

As Journal Entry

John Dr. 100 (sundry debtors)

To Web Services 100 (direct income)

and

As Receipt Entry

Paypal Charges Dr. 8 (indirect expenses)

Bank Dr. 92
To John                     100

I am really confused should I have to use two paypal account like "paypal a/c" & "paypal charges a/c" or just any one.

I would really again apprecaite your help on this.

the document which is very important in paypal in pan card and all transactions entry you can found in your pan card so know your pan detail and always be aware with its status.

Hello Sir, 

paypal deduct the commission and transfer amount to bank account. 

Bank Dr

    to Paypal 

Exp Dr

    to paypal 

its okk or else will be recorded??? 

other thing, if number of entries cross thousands through paypal , its should be recorded as paypal payment as expenses and paypal reciept as income directly as not use the multiple account.