Journal entries- Doubts-pls clarify?????

Dear friends

I have few clarification

1.I received advance pymt from xyz co., -10000/-, sale of product value is 4000/-, remaining i returned back 6000/- to xyz ltd.,

receipt entry: bank a/c dr 1000     (advance)

                              to xyz co   1000

 sale:-  xyz co 4000                         (agst ref)

                     to sales a/c  4000

cash returned:  xyz  co  6000       (new ref)

                                    to bank a/c

pls guide reg this.

 

2. We spent expenditure for website designing for our company. ex:25000/-

           advance paid to abc co.,10000

what is the entry , whether abc co., comes under creditors?

 

3. we paid dealership amt to anand enterprises.

     what is the entry, under which head it will come.

 

pls guide me.

 

malarvannan.

Replies (2)

1. All entries are correct. (you have not mentioned whether you are using a/c only or a/c with inventory)

2. abc co is your creditor. debit expenses, credit abc, then debit abc, credit bank

3. what is dealership? what kind of service is this?

DEALERSHIP WILL BE TREATED AS SECURITY. RECEIPT. BECAUSE IT IS REFUNDABLE IN MOST CASES. IF IT IS NOT REFUNDABLE THAN IT WILL BE TREATED AS YOUR INCOME

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