Contra Accounts to use with Customer and Supplier Journals

[Neville Bailey]

The question that needs to be asked is what is the reason for the supplier journal?

Give me the answer to that question and I can advise you what contra account to use.

[kevvie]

The question that needs to be asked is what is the reason for the supplier journal?

Give me the answer to that question and I can advise you what contra account to use.

Hi Neville, always nice to hear from you.

Let me try to explain.

I have a supplier which is also my customer. So last year creditors dept decided to do a journal to deduct what we owe them and what they owe us. I now decided to reverse these journals and let the accounts be paid the normal way (they pay us, we pay them, no journals). The reason is that creditors dept now want invoices corresponding to amounts outstanding, long story.
They did a journal on contra account 2100/000. If I am not mistaken they had to use Sales 1000/000, but what contra account for the suppliers as I don't have a Purchases account. Only a Purchase Variance.

The amount is small, R1590.00. Credit dept did a journal to both Supplier and Customer account.

I never know which accounts to use! Save me now