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  • Account Posting Clarity

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    rohit_harsh
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    The document provides an example of accounting entries made by a distributor for a purchase order (PO) with a value of INR 100 plus 18% GST. The distributor receives a 2% cashback on the total amount and retains a 10% holdback. The accounting entries credit sales, GST output, cashback, and the retailer account, and debit the retailer, bank, and discount accounts to record the transaction.

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    Account posting Clarity

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    The document provides an example of accounting entries made by a distributor for a purchase order (PO) with a value of INR 100 plus 18% GST. The distributor receives a 2% cashback on the total amount and retains a 10% holdback. The accounting entries credit sales, GST output, cashback, and the retailer account, and debit the retailer, bank, and discount accounts to record the transaction.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views1 page

    Account Posting Clarity

    Uploaded by

    rohit_harsh
    The document provides an example of accounting entries made by a distributor for a purchase order (PO) with a value of INR 100 plus 18% GST. The distributor receives a 2% cashback on the total amount and retains a 10% holdback. The accounting entries credit sales, GST output, cashback, and the retailer account, and debit the retailer, bank, and discount accounts to record the transaction.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Seeun9 o

    DeTeCOrceo. EVacLpoii
    AudioSmart
    -Example for Distributor
    PROGCAP
    CAPITAL FORPROGRESs
    Distributor Distributor- Accounting Entries
    PO Value INR 100 S No
    GST@ 18% Entry Dr/Cr
    INR 18 Amount (INR)
    Cashback Amount@ 2% 1 Retailer A/C Dr 118
    INR 2.36
    Holdback Amount@10% To Sales Cr 100
    INR 11.80** To GST-Output Cr 18
    (Sales of Goods)
    Discount Dr 2.36
    To Retailer A/C Cr 2.36
    |(cashback amount adjusted)
    3 Bank
    Dr 103.84
    To Retailer A/C
    Cr 103.84
    (90% funds received by
    distributor)
    3 Bank Dr 11.8
    To Retailer A/C Cr 11.80
    |(10% Holdback received by
    distributor)
    *Cashback Amount of INR 2.36 is derived
    by 2%*[INR 100 (Total PO Value) + INR 18 (GST Amount)]
    **Holdback Amount of INR 11.80 is derived by
    10%*[INR 100 (Total PO Value) + INR 18 (GST Amount) PROGC

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