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friend0096
June 3, 2020
Question

Sales and Receivables

  • June 3, 2020
  • 1 reply
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I am an agriculturist and want to use QuickBooks for my accounts. I have few questions:-

 

1- When we sell our crops, the middle man deducts some quantity as his charges. How will we handle it in  crop production?

2- After deduction of quantity, the middle man charges commission against the sale of crops. Commission is of certain percentage.

3- When the sale is made, the agriculturist receives amount in 2 or more steps. Its cash and cheques of different dates. How would we handle it.

 

1 reply

asha_kanta_sharma
asha_kanta_sharma
July 18, 2020
1- When we sell our crops, the middle man deducts some quantity as his charges. How will we handle it in crop production?

Answer - You need to consider it as an Direct Expenses

2- After deduction of quantity, the middle man charges commission against the sale of crops. Commission is of certain percentage.

Answer - It is an Indirect Expense and needs to be debited to PL

3- When the sale is made, the agriculturist receives amount in 2 or more steps. Its cash and cheques of different dates. How would we handle it.

Answer - All Post Dated checks needs to be deposited as and when they become due and accordingly make entries in QB which will AR Balances

Hope this helps.
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