Extended warranty entry

HI,

Please suggest the accounting entry along with the groups under while the ledger needs to be created. We collect Extended Warranty from customers which needs to be paid to the manufacturer (Hyundai Motor India Ltd) against which the company provides the extened warranty. Moreover we have to keep a deposit under the Extended Warranty account with the company. At present we are passing the entry by debiting the customer account and crediting the extended warranty account while passing the due entry from the customer.

Replies (1)

Dear Pranjal,

Make the Ledger as per following details :

>> Extended Warranty Charges Received>>> Under in Indirect Income group
>>Hyundai Motor India Ltd>>>Under in Sundry Creditors
>>Customer>>> Under in Sundry Debtors
>>Extended. Warranty Chrgs. Paid>> Under in Indirect Exps. Group.

Thanks

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