My Friend bought a mobile for himself. but he paid amount it from my personal bank account. Later he also returned that amount in my same bank.
how do I make this entry in my books now ?
Replies (2)
Quick Summary
A user is unsure how to record a transaction where a friend bought a mobile using their personal bank account, and the friend later repaid the amount. The advice given is to treat this as a temporary loan or an advance. This involves debiting a loan account and crediting the bank account when the money is paid out, and then debiting the bank account and crediting the loan account when the friend repays the money.