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Treatment for excess payment received from debtors

Govind Rathore (CA Final) (543 Points)

17 November 2014  

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 ...


 10 Replies

CA AnKiT BoHrA (AB) (Manager) (25955 Points)
Replied 17 November 2014

show as other income.....!!! or transfer it to round off account.. by which automatically it will b treated as income part of business...

sachin (accounts) (37 Points)
Replied 17 November 2014

OK then what about tax treatment may be vat or cst or service tax as the case maybe.

Hareesh Kumar (CA Final) (65 Points)
Replied 17 November 2014

treat it as miscellaneous income nd pay income tax if u are exceeding taxable limit

 

CA Parul Saxena (CA) (8113 Points)
Replied 18 November 2014

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.
 

CA Vaibhav Modi (Practice) (43 Points)
Replied 19 November 2014

You will have to pay vat if your debtor taking credit of cenvat

satish lad (manager) (24 Points)
Replied 21 November 2014

I handled same case if debtor is not traceable trf it to misc income and debtor is traceable and future transactions expected u should keep open that amount in his ledger if no future transaction expect trf it to misc income

Amol Jha (Article at Vikram Gupta and Associates)   (36 Points)
Replied 20 February 2016

If any assessee pay extra loan amount then how can adjust those amount for b/s purpose

GOKUL K JADHAV (Master of Commerce & CA final Student)   (150 Points)
Replied 22 October 2018

Cash A/c                  Dr

    To Debtors A/c

nikita tayal (ca student) (119 Points)
Replied 05 February 2019

The excess amount would be taxable under Income Tax Act, 1961 but under which section or sub section?

BNTOUT BT (2 Points)
Replied 24 December 2020

EXCESS AMOUNT HOW TO SHOW IN ACCOUNTS

 


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