What are Journal Entries for Vendor Bill and Payments?

Vendors are normally treated as Sundry Creditors, which comes on the Liability side of the Balance sheet.

To understand how the Journal entries are made in the case of Vendor for a Society or any Business Entity. Let’s take the below scenario.

Scenario 1: Vendor gives the bill to Business Entity of ₹1360 including IGST of ₹360 with TDS of ₹100 on July 1st.

Journal Entry to be made on July 1st

Expense A/C  Dr __________1000

Input IGST A/C  Dr _________360

     To TDS Payable A/C Cr _______100

     To Vendor A/C Cr__________   1260

Scenario 2: Business pay to Vendor ₹1260 as of July 15

Journal Entry to be made on July 15:

   Vendor A/C  Dr __________1220

             To Bank A/C Cr        __________   1220

Factech Accounting Service makes all these very convenient where Users can simply Record Vendor Bills and Payments in a UI and Journal Entries are automatically taken care of.

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