Hello Friends,
Can anyone tell me the account treatment for excess payment received from a debtor?
The journal entry to be passed for the same?
Ex: Receivable from Debotr A is Rs. 5000, But actual amount received is Rs. 5500. with no intention of returning the excess Rs. 500 ...
show as other income.....!!! or transfer it to round off account.. by which automatically it will b treated as income part of business...
treat it as miscellaneous income nd pay income tax if u are exceeding taxable limit
A Dr.............................5000
To Sales.................................5000
Cash Dr................................5500
To A................................................5500
Credit balance in A=Rs.500
Let this amout outstanding in this account if further transaction is there then adjust it against subsequent transaction. Otherwise at the year end transfer it to the Miscellaneous income and pay income tax.
If any assessee pay extra loan amount then how can adjust those amount for b/s purpose
Cash A/c Dr
To Debtors A/c
The excess amount would be taxable under Income Tax Act, 1961 but under which section or sub section?
EXCESS AMOUNT HOW TO SHOW IN ACCOUNTS
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