Hello to all..our company has organized 1 cricket tournament & for that we are collecting prize money as contribution from our suppliers. Can anybody please let me know about the entry coz our suppliers are telling us to adjust money from the amount due to us & for that they are ready to give us credit note. So in that case what will be the entry we need to pass. Thanks in advance.
In my opinion treatment should be:
To book exp JV : Exp. A/c Dr To Cash/ Bank A/c Cr
To Adjust Supplier A/c : Creditors A/c Dr To Exp A/c Cr.
I suppose,rather than crediting expense account in the second entry, fund collected account can even be credited.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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