There’s an ongoing discussion where we need your expertise and knowledge:
There is a Single Supplier A and Single Buyer B.
A supplies various goods to B on different payment terms, Non-LC Direct Payment and BANKERS LC Payment. (LC- Letter of Credit).
Since they are in regular purchase sales relation have a running account for direct transactions and obviously the other transaction’s directly initiated from Bank to Bank via LC PAYMENT.
Supplier A maintains SINGLE LEDGER ACCOUNT to record the various Debit/Credit Transactions and sales for each year.
Even the Buyer maintains SINGLE LEDGER ACCOUNT to record their purchases and payments.
The bench argues that “Why is there not a separate Ledger for NON-LC and LC payment types ?”.
Obviously as a general rule of accounting you cannot maintain different ledgers for same customer having same address and same location.
We need to support this argument via some judgements or rules.
Please advise.
Kind regards
TIA
Read more at: https://www.lawyersclubindia.com/experts/rules-for-maintaining-ledger-account-756851.asp
