Generally we used to pay various taxes on behalf of our client through online and after that collect the cheque of that same amount so in this regard please advise the best journal entry for these type of payment in tally Erp 9.
Ex Suppose we paid Rs. 100 of Mr. Ram as Income Tax Payment and subsequently takes a cheque of Rs. 100 from Mr. Ram so what type of entry has to passed in Tally. Please guide
Himanshu from India
Himanshu, I asked one question from you, I hope, with this, you can reach near the solution.
Q :- 1. Do you not know what entry will be passed when you pay any body?
If yes, it means, you will surely say that when we pay any body whether it is expense or party or asset we debit it and credit the cash or bank. But it in this case, you just debit the Mr. Ram and credit bank. When Ram will pay you will again debit the bank and credit the Ram account. On time, we have given the loan whether he takes us for playing gambling or paying income tax. He became our debtor. Next time, he got freedom from our given debt. Be smart.