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Goods Payment

21 November 2020

Sir,

We have purchased some goods but due to some mistake make the Pay ment from 2nd firm please suggest how to pass the entry in books of account

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4 Replies

JATINDER KUMAR (Accountant) (3662 Points)
Replied 21 November 2020

When purchased goods

Purchase A/c Dr.
To Supplier A/c

When payment made to supplier

Supplier A/c Dr.
To 2nd Firm A/c

When payment made to 2nd Firm

2nd Firm A/c Dr.
To Bsnk

2 Like

Naveen Kumar (629 Points)
Replied 21 November 2020

Thank you Very much SIR

JATINDER KUMAR (Accountant) (3662 Points)
Replied 21 November 2020

Welcome Mr Naveen

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 22 November 2020

I tried to check line of credit policies, debit/credit notes and ERP policies but there is no such procedure defined. @ Jatinder Kumar is correct using intra company transactions with clear notes will help because, the expenses related to cost of sales will not be treated as intra group transaction and consolidated statements show both parents and subsidiary’s cost of sales. IndAS

Parent+ subsidiary- intra group + unrealised inventory profit

all expenses= P+ S

current account like bank= P+S