Mobile recharge business accounting entries

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.

you have to maintain accounts with inventory

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

Agree with Joshi Ji

Fully agree with Joshi ji

Purchase a/c    Dr       Rs. 5125

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

         To cash  a/c .                               Rs.   5000

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/-

I also agree with Joshi Sir.

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

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

Commission Received Account will be Income Account

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.

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.

Yes Sir you are right.