Please tell me on accounting

1277 views 7 replies

Dear Friends ,

please help me on the following Situation regarding credit card sales accounting.....

 

Suppose there are 2 Shops.... A & B..... we are doing accounting of A.

A does not have credit card Swipe Machine.... But A has Control over B's Swipe Machine and  B's Machine is at A's place.

So Credit Sales of both Shops are Swiped at B's machine.....after Swiping B pays Cash to A against Swiping and A pays to B after deducting credit card sales of A. 

so please help me how should i do accounting of above transactions...i.e sales entries and transactions of receipt and payment from/to B.

Regards ,

Vivek.

 

Replies (7)
Mai toh A n B me hi confuse ho gai........

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

thankyou......very much

Its al rite.

fully agree with vineet

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details