In case the purchasing company agrees to act as the agent of the vendor for collection of the book debts, in the books of the purchasing company, the amount of debtors should be credited to
Vendor's suspense account
When the purchaser collects book debts as the vendor’s agent, the initial entry is debit Vendor’s Debtors Account and credit Vendor’s Suspense Account. The suspense account records the amount ultimately payable to the vendor.
Important Questions from Journal Entries
The return of goods by a customer is debited to:
________ is often referred to as book of prime entry or the book of original entry.
"Each transaction is analysed into the debit aspect and the credit aspect. This helps to find out how each transaction will financially affect the business". The given statement is regarded as which function of journal?
Furniture for a cloth dealer is a/an
What will be the journal entry for recording this transaction?
Returned goods to Mr. B of Rs. 500 and paid to Mr. B Rs. 4,000 in full settlement for buying goods worth Rs. 5,000.
1. Mr. B A/c Dr
Rs. 5,000
To Purchases A/c
Rs. 4,000
To Return Outwards A/c
Rs. 5,00
2. Mr. B A/c Dr
Rs. 5,000
To Cash A/c
Rs. 4,000
To Return Outwards A/c
Rs. 500
To Discount Received A/c
Rs. 500
3. Mr. B A/c Dr
Rs. 4,500
To Cash A/c
Rs. 4,000
To Discount Received A/c
Rs. 500
4. Mr. B A/c Dr
Rs. 4,000
To Cash A/c
Rs. 4,000
