Please tell me on accounting

A/c entries 1156 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


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