How to pass a journal entry to adjust accounts of debtors and creditors


  1. A payment of import duty was paid by our debtor direct to our creditor UPS Ltd. So how to enter this entry to give credit to our customer and debit our UPS Ltd.

  2. How to create a new account in the books such as I want to create an account in the name of Custom Clearance & Delivery. But there is only one account named Carriage is available. I also wish to create an account for Storage to pay stock keeping charges to Fulfillment Company.

Please help.

Thank you

Sandy Agrwal


Hope this helps

Thanks for your reply but my question is still unsolved. When I tried to enter a transaction of payment made by my customer directly to creditor UPS Ltd. I opened the journal entry page but for selecting the proper account there is only consolidated account Sundry Creditors/Debtors are available whereas for a proper entry I need to have customer and creditor separate accounts. If we pass entry to consolidate accounts it impacts on total liability or receivables but not the individual accounts. I need to pass the entry in individual accounts. Please advise/help.

You’d need to use a dummy bank account (either create one called something like “contra holding account” if this is a regular occurrence, or just use drawings or director loan). Mark the client invoice as paid into this account and the supplier purchase as paid out of the same account. Or manually create the relevant money in and out transactions and tag them as you normally would, which might be easier if the amount isn’t paying off the invoice and purchase in full.

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