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TMI BlogIs my accounting method correct?X X X X Extracts X X X X X X X X Extracts X X X X ..... Is my accounting method correct? X X X X Extracts X X X X X X X X Extracts X X X X ..... me. So, I made following accounts. So, I made three accounts Amazon customer, Amazon clearing account, Amazon vendor. When I make sales, I tansfer the sales amount to our amazon account: Entry: Amazon clearing account: Credit When Amazon tranfers money to my real bank account after deducting their fees on weekly basis Entry: Amazon clearing account: Debit Real bank account: Credit When Amaz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on issue invoices for their services like shipping, etc. at end of month Entry: Amazon clearing account: Debit Expenses: Credit So, is this methodology correct? And, since Amazon raises the proper GST compliant invoices for my customers with my company name and I have saved them all. So, in my accounting can I make my all invoices in the name "Amazon customer" without saving any add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resses? Though I have saved the states name in which the sale is made. Also, If there is a case of return and refund, Can I skip that entry permanently? As amazon charges and makes an invoice called "refund charges" in my name. So, there is no need to debit and credit notes on a product level basis. If I have messed up somewhere feel free to ask. It will be a great help if you can ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rify this method and help me. Regards, Avneesh Reply By Ganeshan Kalyani: The Reply: Accounting entry is very important to do in a correct method. There are Accounting Standards to be followed while maintaining books of accounts. Which amount to consider is also an important point. Hence it is my humble submission that you should consult a practicing Chartered Accountant who would guide you in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a proper way. Thanks
Reply By Avneesh Yadav:
The Reply:
Hi,
I understand that you are correct but I am a very small business owner. I had a CA but I had to pay him 25% of my net profits. The fees is too high. That's why I had to do my own.
Can you please tell me what's wrong with this method? X X X X Extracts X X X X X X X X Extracts X X X X
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