Sir, please advise what can be the consequenses in bill is made in one person name and payment made other?

Books of X:

on purchase:

Purchases A/c Dr.

To Company A/c

on sale:

Y A/c Dr.

To Sales A/c

on receipt:

Company A/c Dr.

Bank A/c Dr.

To Y A/c

Sir,

        I got problem with your receipt one as payment is not been made from purchaser Acoount i.e "X" then how this Bank A/c will be debited in Books of "X"

Debited with the receipt of profit part, received from Y.

Books of X:

Company A/c Dr. (amount paid by Y to Company)

Bank A/c Dr. (profit amount received from Y)

To Y A/c (total amount paid by Y)

 

Sir.

      Is this receipt entry has to been shown in journal entries in tally.

OK, split the entry. One journal:

Co. account Dr.

To Y

one receipt:

Bank account Dr.

To Y

Sir,

Sir,

Bank account of X, if credited in his bank or Cash account, if cash is paid by Y to X.

Sir,

     That is the only problem here payment is made by the buyer to company , instead of paying to seller i.e "Y" is the buyer paid to company from his own account ,instead of paying to "X".

As you said, ""Y" only pass the profit of good to "X" in cash".

So, X's cash account will be debited by the amount paid by Y to X.

Sir,

       Here supppose "Y" does not pass the profit of good to "X" in any way, then what will be receipt entry?Here in case

As there is no receipt, then no entry for receipt. The balance amount will remain in account of Y in the books of X as due.

Sir, "Y" is making the payment and is purchaser can "Y" taken sundry creditor.