Please tell me on accounting

1. In the Books of A:-

a. at the time of Sales made by A, you may pass:-

       ----- i. Customer A/c                                 ....Dr.          <Sales Amount+VAT>

                           To Sales A/c

                           To Output Vat A/c

                (The above entry signifies that Sales has been made by M/s A)

               ii. At the end of Day:-

                    B's A/c                                            .....Dr.         <Total of Day's Sale>

                             To Customer A/c

                 (This entry signifies that such an amount is recoverable from M/s B)

b. At the time of recovery of Cash from B:-

            Cash A/c  /  Bank A/c       .....Dr.       <Total Amount receovered for that day in Cash>

            Bank Charges A/c           ......Dr.        <Charges for Swipe out of Card recovered by bank from B>

                       To B's A/c

I did not understand since Cr. Card Machine is of M/s B and the same amount is received by B, then why A is require to pay B. As u have written "A pays to B after deducting credit card sales of A."

@ Vineet in this case at the time of swiping , B's Debit card is with A. Sorry i didnt mentioned this... so A with withdraws money from B's A/c and pays the cash.....

thankyou...

In such case, the entries are:-

1. In the Books of A:-

a. at the time of Sales made by A, you may pass:-

       ----- i. Customer A/c                                 ....Dr.          <Sales Amount+VAT>

                           To Sales A/c

                           To Output Vat A/c

                (The above entry signifies that Sales has been made by M/s A)

               ii. At the end of Day:-

                    B's A/c                                            .....Dr.         <Total of Day's Sale>

                             To Customer A/c

                 (This entry signifies that such an amount is recoverable from M/s B)

b. At the time of withdrawal from debit card:-

       ------ Cash A/c                     ....Dr.     <Amount withdrawn>

                Bank Charges            .....Dr.     <only our Charges for Swipe out of Card recovered by bank from B>

                              To B's A/c

c. Excess will be refunded to B:-

       ------ B's A/c                           ....Dr.

                               To Cash A/c

Its al rite.

fully agree with vineet