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Mobile recharge business accounting entries

Chirag Shah (Personal) (30 Points)

28 January 2016

Hello, I am doing Mobile Recharge business, I wants help regarding Accounting entries in Tally 9 as transactions mentioned below: # I had ordered Balance for Rs. 5,000/-. # The amount credited in my Account is Rs. 5,125/- included commission @ 2.5%. # i am paying only Rs. 5,000/- to dealer by Cash. So, what entry should have to be entered in Tally? Please guide me. Thanks.

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29 Replies

Nair Vijayalakshmi Vijayan (CA Internship Completed) (46 Points)
Replied 28 January 2016

Hai,

I think the entries in Tally will be as mentionied below -

In Payment Voucher

Recharge Card (Under Asset) A/c Dr 5000

To Cash A/c 5000

(When cash is paid to the dealer or if its credit purchase then instead of cash post it under Sundry Creditor)

In Recipt Voucher

Cash A/c Dr 5000

Commission Received A/c (Under Indirect Income) Dr 125

To Bank A/c 5125

(When amount is credited to bank along with your commission)

Note - You can also post cash and bank entries in Contra Voucher in Tally.

PRADEEP PAL (ACCOUNTANT & TAXATION CONSULTANT) (73 Points)
Replied 09 March 2016

PURCHASE A/C.			DR.	5000
Quantity	Rate	Amount
5125	0.98	5000

CASH			CR		5000

PRADEEP PAL (ACCOUNTANT & TAXATION CONSULTANT) (73 Points)
Replied 09 March 2016

you have to maintain accounts with inventory

Jitendra Joshi (CMA) (65 Points)
Replied 17 March 2016

Following Accounting entries should be passed:-

1)- While purchasing balance-

Recharge Balance - Airtel(Suppose the balance is with Airtel) A/c- Dr Rs.5125

To Cash A/c Rs.5000

To Commission Received A/c Rs.125

2)- While Doing the recharge of customer

Cash A/c Dr Rs.5125

To Recharge Balance - Airtel(Suppose the balance is with Airtel) A/c Rs.5125

2 Like

CA Prateek Garg (CA in Practice) (1444 Points)
Replied 18 March 2016

Agree with Joshi Ji

manoj (student) (5205 Points)
Replied 29 March 2016

Fully agree with Joshi ji

Arjun Vadde (Job) (31 Points)
Replied 15 May 2016

Purchase a/c Dr Rs. 5125

To comission recieved ( @ 2.5%.) a/c.Rs.125

To cash a/c . Rs. 5000

Mukesh Kumar Gupta (Article) (38 Points)
Replied 19 September 2016

Dear Sir,

i am authorised distributor of Tata Teleservices Ltd.

soppose I have paid to Tata tele services Ltd

Rs.200000/-then i entry passed

tata teleservices Ltd A/c Dr.200000/-

To Bank 200000/-

tata tele services given me Rs.210000/-

Mobile Rechage balance that means Rs.10000/-

tata teleservices TDS dedcuted on Rs.10000/- @ 10%

how to pass entry in tally.

My opinion is

Purchases A/C Dr.209000

TDS A/c Dr. 1000

To Tata teleservices Ltd. 200000

To Commission recd. 10000/-

Mohit Verma (-) (59 Points)
Replied 07 November 2016

I also agree with Joshi Sir.

Mohit Verma (-) (59 Points)
Replied 07 November 2016

Please tell in which head "Recharge Balance - Airtel A/c" should be kept. Whether in "Assets" or in other?

Jitendra Joshi (CMA) (65 Points)
Replied 07 November 2016

Recharge Balance - Airtel A/c will be an Asset Account

Commission Received Account will be Income Account

Mohit Verma (-) (59 Points)
Replied 13 November 2016

But sir it is an item that we deal buy n sell and its effect should be seen in P&L A/c. And if we assume it as asset it shows in balance sheet. I had done it in a new way. I assume it as a stock item with quantity feature making to No. By doing this its effect can be seen in Trdng. & P/L A/c.

Jitendra Joshi (CMA) (65 Points)
Replied 13 November 2016

Problem in treating all Recharges as sales is that the Sales turnover will be huge. Your client may come under Tax audit also if he is having a mediocre recharge shop also. Practically Recharge amounts are not sale for him, sale volume is the commission amount that he is getting.