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How to show Journal Entry

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Amit Prakash Singh

118 Points Posted on 01 June 2020

My company has taken money from vendor(creditor) (name ABC ) but he has given it by his personal account (like XYZ ) neft in bank ,Is we will treat it as unsecured loan or direct enter in vendor acoount ?how we will show this journal entry in book of account?

Replies (6)

Quick Summary

This discussion addresses how to handle a journal entry when a company receives funds from a vendor (creditor) via the vendor's personal bank account. The consensus is that this should still be treated as a payment from the vendor, affecting the vendor's account and the company's cash or bank balance, rather than being classified as an unsecured loan. The recommended journal entry is to debit Cash/Bank and credit the Vendor's account.

CA SANDESH MAHIPAL

Practicing in GST and MSME

1985 Points Posted on 01 June 2020

As per my view, there will be no impact on your accounting. You will treat it as vendor's payment only.

Amit Prakash Singh

118 Points Posted on 01 June 2020

This is not payment it is recived money from creditor

CA SANDESH MAHIPAL

Practicing in GST and MSME

1985 Points Posted on 01 June 2020

When i receive any payment from any creditor or debtor, it doesn't impact from which bank account money has been transferred. Only it is to be ensured that transferor has transferred, not any one else.