Answer Posted / jayesh eay

A is paying to B , on behalf of C.
Therefore in the books of A

1) B's a/c ....Dr ( Receiver)
To Cash/ Bank..cr ( Cash out )

2) Need to reclass the previous entry , because he is not paying for himself . He is paying on behalf of C. So it is like an advance to C., hence
Reclass journal
2) C's a/c .....Dr
To B's a/c......cr

In the books of B

1) Cash/ Bank .. A/c ........Dr
To A's. a/c.......,.............cr
( Being Cash received from A)

Again similarly B would also need to reclass as the payment is not from A, it is from C, hence

2) A's a/c ..........Dr
To C's a/ ...........Cr


In the books of C.

C's liability has reduced for B, ( As the payment was made ) similarly C's liability has increased towards A( As A paid is as an advance towards C)

Hence by the American Golden rule .
Liability increase .....Cr
Liability decrease Dr

1) B's .....a/c ..........Dr
To A's a/c .........cr

Thanks

.

How to Automate requirment mapping in QC?

1513

---

is goods in transit will be liable for entry tax ?

1272

---

Trial balance as on 31st March, 2014 Particulars Debit Pula Particulars Credit Pula Wages 14 100 Dividends received 4 300 Salaries 13 000 Bank overdraft 41 000 Opening Stock 40 000 Returns 1 000 Machinery 49 000 Creditors 14 200 Investments 30 700 Sales 258 500 Drawings 23 000 Capital 30 000 Purchases 130 000 Returns 2 000 Debtors 18 000 Advertising 13 400 Interest 4 800 Cash 11 000 349 000 ======= 349 000 ======== Additional information: 1. Closing stock is valued at P53 000. 2. Wages include P350 being advance against wages. 3. Wages include P1 000 paid for erection of machinery. 4. A purchase of stationery for P430 has been inadvertently included in the Purchases account. 5. A sale of investments with a book value of P2 600 for P2 500 has been included in the Sales Account. 6. Salaries include P150 per month paid to the proprietor’s domestic servant. 7. Machinery is to be depreciated by 10 per cent. Required: a. The revenue statement (Trading and Profit and Loss Account) for the year ended 31st March 2014 and b. Statement of financial position (Balance Sheet) as on 31st March, 2014.

1704

---

Define a company's payable cycle?

722

---

What are the characteristic features of financial accounting?

630

---

---

Is it necessary after every journal entry to show its treatment in P&L a/c? Eg. if I am asked to show journal entry of purchasing furniture & fixture on 1st Aug 06, i.e. Furniture & fixture a/c Dr. To cash/bank a/c Along with this, I have to pass following journal entry on 31st Mar 07?? P&L a/c Dr. To Furniture & fixture a/c

1059

---

hi m freshe working as a account assistance. i want know about accounts, what is balance sheet, profit & loss a/c, trail balance? why these are require to company? how can i know about full account work in tally? what should i do everyday? how to finalisation calculting? kindly explain please..

1600

---

what is the difference between profit center area and business are.? please make me clear.

1994

---

When we received payment from creditors

1190

---

sir i want to know that where we taken entry of sals return in excise in manufecturing unit tell me .

1679

---

Tell me what is reversing journal entries?

576

---

why we multiply no. of purchasing year with average profit

1571

---

over draft balance as per cash book (journal entries needed) a,cheques deposited in bank but no entry was passed in cashbook b, credit side of the bank, column cash short c, chques received but not sent to bank d, insurance premium paid by bank as per standing instructions e, credit side of bank, coloumn cash short f, bank charges entered in cash book twice g, cheques received returned by bank but no entry passed h, cheques issued returned on technical grounds i, bills directly collected by bank j, bank charges debited by bank k, cheques received entered twice l, bills discounted dishonoured

2291

---

Dear sir, In tally what is list of cost centres? and what is the list of cost categories?

1536

---

when we purchase of tractors and two wheeler vehicle from other state what we get taxes exemptions

1505

---