Journal Entry and Ledger Posting for payment to Sundry Creditors through Bank Account.

Generally Sundry Creditors of a Business Unit refer to those persons, from whom purchase of Goods or Services are made on Credit basis.

The Supplier/Vendor/Sundry Creditor from whom a Business Unit purchase goods or services on Credit, later days the total invoice amount is paid through Cash or Bank Account.

Let's discuss about the Journal Entry and Ledger posting, when payment is made through Bank Account to Sundry Creditors.

When payment is made through Bank Account to Sundry Creditors.

Sundry Creditors Account shows Debit effect and,

Bank Account shows Credit effect.

Journal Entry

Ledger Posting

In Sundry Creditors Ledger Account.

In Bank Account.

Example : 

In the Books of M/s.Swastik Store, amount paid to M/s.Vijayanand(Sundry Creditor) vide NEFT Ref No.23214567 for ₹99,000/- on dt.29/08/2023from HDFC Bank CA No.0023

Pass necessary Journal Entry and post them into their respective Ledger Accounts for the above transaction.

In this transaction.

Debit Ledger is :

• M/s.Vijayanand Account

Credit Ledger is :

• HDFC Bank CA No.0023

Journal Entry

Ledger Posting

In M/s. Vijayanand Account.

In HDFC Bank CA No.0023