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We purchase goods worth rs. 25000 from shyam co. in credit.
We paid him 20000 and rest we refuse to pay. What is the
journal entry for it. This is not discount received.

Question Posted / mdhiru420

Answers were Sorted based on User's Feedback



We purchase goods worth rs. 25000 from shyam co. in credit. We paid him 20000 and rest we refuse to..

Answer / kanumuripirati

Purchases A/c Dr. 25000
Shyam Co. A/c 25000
(being purchases made)

Shyam Co. A/c Dr. 20000
Bank A/c 20000
(being amount paid through cheque)

For the balance amount we raise a debit note to Shyam Co.
If we take the reason of refusing to pay as "difference in
Rate" the entry is as follows

Shyam Co. A/c Dr. 5000
Rate Difference A/c 5000
(being debit note issued for rate difference)

Is This Answer Correct ?    17 Yes 4 No

We purchase goods worth rs. 25000 from shyam co. in credit. We paid him 20000 and rest we refuse to..

Answer / guest

Purchases A/c Dr. 25000
Shyam Co. A/c 25000
(being purchases made)

Shyam Co. A/c Dr. 20000
Bank A/c 20000
(being amount paid through cheque)

For the balance amount we raise a debit note to Shyam Co.
If we take the reason of refusing to pay as "difference in
Rate" the entry is as follows

Shyam Co. A/c Dr. 5000
Rate Difference A/c 5000
(being debit note issued for rate difference)

Is This Answer Correct ?    9 Yes 1 No

We purchase goods worth rs. 25000 from shyam co. in credit. We paid him 20000 and rest we refuse to..

Answer / sankeerthana

Untill and unless you express clearly about the reasons for
refuasal of payment of balance as agreed at the time of
purchase,your account will be remained as a debtor in the
suppliers books of accounts and the supplier can take
action against you for non settlement of bill


sankeerthana
www.therealaccountants.com

Is This Answer Correct ?    4 Yes 1 No

We purchase goods worth rs. 25000 from shyam co. in credit. We paid him 20000 and rest we refuse to..

Answer / h.r. sreepada bhagi

If the balance Rs. 5000/- is not discount, then mention why
it's not paid. Question is incomplete with out mentioning
the reason for refusal to pay.
If the reason is defective goods received to that extent,
account purchase only for Rs. 20000/-, but if u refuse to
pay with out justifiable reason, then the very action is
unethical or against the agreed terms with the supplier.

Is This Answer Correct ?    3 Yes 1 No

We purchase goods worth rs. 25000 from shyam co. in credit. We paid him 20000 and rest we refuse to..

Answer / tushar

Purchase A/c Dr. 25000
To Shyam A/C 25000

Shyam A/C Dr. 20000
To Bank A/C 20000

For remaining 5000 you have to issue debit note to party &
the entry will be:-
Shyam A/C Dr. 5000
To Purchase A/C

Is This Answer Correct ?    2 Yes 2 No

We purchase goods worth rs. 25000 from shyam co. in credit. We paid him 20000 and rest we refuse to..

Answer / sandeep rajput

Is it 101% covered by rebate & discount. It is in practice
in our system, whenever we have made less payment, it
should be treated as Rebate & Discount.

Is This Answer Correct ?    1 Yes 1 No

We purchase goods worth rs. 25000 from shyam co. in credit. We paid him 20000 and rest we refuse to..

Answer / rose

Purchase A/c----Dr 25000
To Discount A/c---cr 5000
To Shyam Co A/c---cr 20000
(Being Purchase of Goods & Discount Received)

Is This Answer Correct ?    1 Yes 1 No

We purchase goods worth rs. 25000 from shyam co. in credit. We paid him 20000 and rest we refuse to..

Answer / ipa

On Purchase:
Purchases a/c. Dr. 25,000.00
to, Shyam & Co. 25,000.00

On Payment:
Shyam & Co. Dr. 20,000.00
to, Cash / Bank a/c. 20,000.00

On refusal for payment:
No entry, as the matter is under dispute.

Is This Answer Correct ?    4 Yes 5 No

We purchase goods worth rs. 25000 from shyam co. in credit. We paid him 20000 and rest we refuse to..

Answer / tasdeeq ansari

PURCHASE AC\ DR 25000
TO SHYAM TRADING CO. 25000


SHYAM TRADING CO. A\C DR 20000
TO BANK A\C 20000

IF THE GOODS ARE REJECTED OR RATE DIFF THEN ISSUE DEBIT NOTE

SHYAM TRADING CO A\C DR 5000
TO REJECTION/RATE DIFF A\C 5000

Is This Answer Correct ?    0 Yes 1 No

We purchase goods worth rs. 25000 from shyam co. in credit. We paid him 20000 and rest we refuse to..

Answer / mdhiru420

for purchase:

purchase a/c dr. 25000/-
to shyam co. a/c 25000/-


for payment:

shyam co. a/c 20000/-
to cash/bank a/c 20000/-


and about 5000/- ???????????

Is This Answer Correct ?    8 Yes 10 No

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