Accounts Payable Question:
Download Questions PDF

1. If assume we paid 50/- as an advance for worth or 100/- goods, but our supplier sent only up to 25/- worth of goods. Know my question is that we want to close the transaction now. How it possible?
2. What about VAT like Tax Setups in AP and AR?
3. what about the SWEEP command in AP?


Answer #1
First there shouldn't be assumptions in transactions. If you received 25 of worth in exchange of 50 advances you can close it for a temp. The transaction entry would be...

Supplier A/c Debit 25

Received Goods A/c Debit 25

Cash paid A/c Credit 50

Answer #2
Goods recevied

Answer #3
It will depend on the contract,
COGS will increase by 25
Bank credited by 50
Supplier account credited 25 and debited 50 (total Debit 25)

Download Accounts Payable Interview Questions And Answers PDF

Previous QuestionNext Question
What are steps to define supplier?What steps would you take before making a payment?