How Do I Account For Credit Card Merchant Account In Tally Or Other Accounting Software?
I need to create groups of accounts for a company in Tally or other accounting software. I have 2 merchant accounts with different credit card companies. One of them credits my account in their bank and only sends me a statement of amount and commissions – other sends me a cheque after deducting the commissions. – How do I account for such accounts while making entries in to accounting software? Thanks for your time and help.
If your are asking about the accounting entries, the rules are given below for your reference.
Rule 1
Debit what comes in. Credit what goes out
Rule 2
Debit the Expenses. Credit the Income
Rule 3
Debit the Receiver. Credit the Giver.
A sample entry is given below for payment for XYZ expenses using credit card:-
Dr XYZ expenses Rs 5000
Cr Credit Card a/c Rs 5000
Next, when you make payment (or deposit cheque in your Credit card a/c), the entry would be:-
Dr Credit Card a/c Rs 5000
Cr Your Bank a/c Rs 5000
Remarks:-
1) XYZ expenses ledger to be opened under group “Expenses Indirect”
2) Credit card a/c to be opened under group “Bank OCC a/c”
3) Your Bank a/c to be opened under group “Bank a/c”
For Tally Integration using RTSlink DLL, visit http://www.rtslink.com and sample programs visit http://rtslink.blogspot.com
Comment by CSSAsks — November 9, 2009 @ 11:16 pm