What is the journal entry for per diem paid? should it be included in salary paid to employees?
What is the journal entry of cash received from a person on behalf of another? Please tell me a group also for proper understanding
Try bills of exchange method where the drawer is the seller and drawee is the customer.
X spent on behalf of Y
In your books
Drawee’s personal accounts a/c
To Bank/Cash a/c
in his book:
Bank/Cash a/c
To Drawee’s personal a/c
when your friend accepted to pay his bills,
in your books:
Accounts receivables a/c
To Drawee’s personal a/c
in his books:
Drawers personal account a/c
To Accounts payable a/c
when he finally settles his expenses with you,
in your books:
Cash/Bank a/c
To Accounts Receivable a/c
in his books:
Accounts Payables a/c
To Cash/Bank a/c
this means he has settled his borrowings with you.
https://www.playaccounting.com/explanation/bill-of-exchange/accounting-for-bill-of-exchange/
Chirag is the drawer, you are the drawee.
What is the journal entry of cash received from a person on behalf of another? Please tell me a group also for proper understanding but we recived money from behalf of debtors from another company please tell me a entry of tally
What is the journal entry of cash received from a person on behalf of another? Please tell me a group also for proper understanding and we received money from XYZ Behalf of debtors ABC
In chirags books
Edorsee’s personal a/c
To Accounts receivables a/c
in your books: record no thing if your company is paying, but do the below if your obligated to
Accounts payable a/c
To Endorsees a/c This means your friend will pay Chirag and you have to pay your friend.
when Chirag gets his payment
in Chirags book:
Bank/Cash a/c
To Endorsee’s personal a/c
in your books when you pay your friend later on:
Endorsees a/c
To Cash Bank a/c
dont record anything here if company is paying for your ur expenses.
coming to your scenario, if XYZ pays n behalf of abc debtors,
In the company’s books it was previously recorded as
ABC debtors a/c
To Sales a/c
then change it to Endorsees account
XYZ Endorsee a/c
To ABC debtors a/c
when you receive the payment from them
Bank a/c
To XYZ Endorsees a/c
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