wht shd b entry

it can be treated as if cash has been recieved by ABC co and Mr A has withdrawn the cash. .

Entries..

Cash A/c                       Dr  10,000

    To Sales                                         10,000

A's Drawings a/c       Dr  10,000

   To Cash                                         10,000

Waiting for other views..

Hi Naroo,

From your question it seems that it is proprietorship business. In my opinion, in proprietorship, it doesn’t make any difference that in whose account money is received because both are one and the same.

In respect of accounting query, I would say that as antique items are sold through internet, hence payment from customer must be after delivery means at the time of delivery.

If inventory records are also maintained, then pass following entry at the time when antique items are delivered :- Customer Account Debit to (Particular / Specific) Antique Item Account. When payment is received then reverse Customer Account, and pass following entry :-

Cash / Bank Account Debit

to Customer Account.

IF inventory records are not maintained then pass the entry only after payment is received i.e. –

Sales Account Debit

to Customer Account.

Whatever I have given is what I think and my assumption about system of concerned ABC & Co. If my assumptions are wrong then tell accordingly. And other members, kindly rectify me if my answer is wrong.

@ Yogesh

Payment in proprietor's a/c & payment in prop. business a/c, these are not same even in prop business... otherwise there is no point in making capital a/c in prop business.

Karthik is right..if A has received payment on behalf of ABC n haven't deposited to ABC's a/c, it will be treated as capital withdrawal. 

If money is deposited into ABC's a/c by A, it will be simple sales entry:

Bank            Dr.

            To Sales      

Hi Vivek,

Forget about what Theory says. I was speaking about practically what happens.

Take an example of ITR filing. You never file two separate ITRs for proprietor and his proprietorship. I suggested aforesaid entries only to keep the things as simple as possible and to avoid a mess. I have seen many many cases where both are considered one and same.

thnx to all

Originally posted by : Yogesh Shah
	Hi Vivek, Forget about what Theory says. I was speaking about practically what happens. Take an example of ITR filing. You never file two separate ITRs for proprietor and his proprietorship. I suggested aforesaid entries only to keep the things as simple as possible and to avoid a mess. I have seen many many cases where both are considered one and same.

By following ur logic, one can charge his household expenses to his business P & L... C'mon man that is not possible..

In a’s books:

M     Dr

  To bank/ abc co

In abc co’s books:

Bank/ A   Dr

  To m

The Entry should be:

In the books of ABC Co.

Mr.M A/c 10,000

          To Sales 10,000

In the books of Mr.A:

Cash A/c Dr. 10,000

           To Mr.M 10,000

ABC Co. A/c Dr. 10,000

            To Cash 10,000

In the books ABC Co.

Cash A/c Dr. 10,000

           To Mr.A 10,000

Mr. A A/c Dr. 10,000

      To Mr.M A/c 10,000

I  agree with Parth

in his personal file

CASH ACOOUNT dr 

TO ABC & CO A/C

In his ABC a/c

Capital A/c or A a/c  Dr 

To Sales A/c

NO more entry required

in the books of accounts of ABC Co.

M A/c Dr.                xxxxxxxxx

To Sales               xxxxxxxxx

cash A/c Dr.         xxxxxxxx

To Mr. A 's A/c      xxxxxxxx

Mr. A's A/c            xxxxxxxx

To Mr. M               xxxxxxxx

In the books of Mr. A

Bank A/c  Dr.      xxxxxxx

To M                    xxxxxxx

Abc Co. Dr.         xxxxxxx

To Cash              xxxxxxx

The entry Should be :-

1}  In Books Of  ABC  Co. 

        Mr. M A/c            Dr.                      10000

        To Sales  A/C   Cr.                      10000

2}   Mr. A  A/c Or      Dr.                     10000/-

      To Mr  M  A/c      Cr.                     10000/-

( Due To Amount Wrongly Deposited by mr. M in Mr A's Account )

3.}  Cash / Bank  A/c   Dr.                    10000/-

       To  Mr. A A/c           Cr.                     10000/-  

( Amount Rcd . From  Mr . A   As Advance Recovery)

In Books of Mr. A

1}          Bank A/c         Dr.              10000/-

 To    Mr. M A/c          Cr.              10000/- 

  2}       Mr. M A/c           Dr.              10000/-

To     ABC Co. Ltd    Cr.               10000/-

( Amount Rcd On Behalf of ABC Co. From Mr M ) ( Concider as Advance Received from ABC Ltd .)

   3)     ABC Co. Ltd. A/c        Dr.        10000/-

    To  Cash / Bank              Cr.        10000/-

( Repayment of advance)