What is the Journal entry if a Demand Draft is taken by
Company B on behalf of Company A? Company B has it's A/c
with Bank X. Company A has it's A/c with Bank Y.
- 4 Answers
- 23936 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / sumancwa
Company B is making payment on behalf of company A. Here Company A is getting Benefit.
Accounting Principles:
Personal Accounts: Debit the Receiver
Credit the Giver
Real Account: Debit what comes in
Credit what goes out
Nominal account: Debit the Loss and Expenditure
Credit the gain or Profit
According to above mentioned principles:
Debit: Company A (Based on Personal Account)
Credit: Bank X (Based on Real Account)
| Is This Answer Correct ? | 13 Yes | 1 No |
Answer / samson
If the Demand Draft is taken by company B, We have to pass
journal entry debiting Company A and crediting CompanY B's
Bank A/c.
Correct me if I am wrong, Pls.
| Is This Answer Correct ? | 12 Yes | 5 No |
Answer / naresh
1.A DD taken by company B & has a account in X Bank
2.that DD goes to company A & company A having it's account
in Y Bank. Jurnal Entry Shoud be like
Company B: Bank (x) Company A
CR DR
Company A: Bank (Y) Company B
DR CR
| Is This Answer Correct ? | 8 Yes | 4 No |
Answer / satyaki_raju@yahoo.com
Dear Suman is it necessary to write all those definitions
and rules. Answers should be accurate and briefYour entry
part is correct
| Is This Answer Correct ? | 1 Yes | 4 No |
wat s brs?
What is rules of depricaition in company act.or IT act.
what is bank reconcilations statement
Can any one explain me how profitability analysis s implemented in Sap & tell me which tables get effected by this... i want to know about copa_derive msgtypes also...
Hello, Can u tell me the procedure of Sale Tax Registration in Jharkhand. (VAT & CST )WITH Supporting Proof
what is holding company?
23 Answers Capital IQ, General Petroleum, Joint Stock Company,
what tax will be on puchasing of sweets and is necessery to use form 38.
when do we claim service tax credit?for eg: in a company they are not claiming any service tax credit for their telephone expenses incured? what would be the reasons for not claiming it?
i am called for interview but im getting confused wt sort of questions i wd have to face,its a bank job and post is cash ofiicer please help me.
what does debit and credit mean in accounting and what is its underlying concept and its treatment. in the cash book dr means receipt nad credit means payment? is it correct?
What exactly balance sheet depicts
EXPAND______________PLIP
Audit 
