Mobile replacement

Accounting Entries 251 views 3 replies

Soumendra Jaiswal

Tax Consultant

82 Points Posted on 15 November 2016

i am having doubt in accounting of a firm who is engaged in mobile phone distribution of a company....actually firm makes sales to retailer and reatailer to final customer....and incase of any defect in handset customer returns the handset if in warrenty for replacement to retailer and retailer returns to distributor....and distributor sends the defective handset to company and gets new handset in its place and forward to ratailer for customer....

my question is that what will the proper way to show this for distributor in its books....how can we record this in tally or in manual entry....??

Replies (3)

Praveen Pandit

gst

98 Points Posted on 15 November 2016

Entry should be given below in the books of Distributor 1.at the time of sale Retailer A/c- Dr To sales A/c 2. at the time of return from retailers Sale return A/c Dr To Retailer A/c 3 a the time of return to Manufacture Manufacture A/c - Dr. To Purchase Return 4 at the time of replacement Purchase account Dr to Manufacture A/c 5 at the time of replacement to retailers Retailers A/c Dr to sales A/c please maintain same unique no in all the entry with inventory in tally when ever you show the report related to particular item it shows the complete relation press ALT+F1 on particular inventory report.