Gaurav Ghai (58 Points)05 March 2020
The money paid to the seller. so far the entry is :-journal entry is:-Investment A/C Dr ; To party A/C.Then comes Payment entry. That is:-party A/C Dr To Bank A/C.This is the true face of the transaction. Until the dispute is settled all related A/Cs stand there.
On cancellation,we can file suit on that party. cash book transaction is the evidence.