Respected Sirs/Madam
In a Jewellery shop Gold Ornamets are exchanged against sale of new gold Ornaments for their customers. How to show the accounting entries, Please show with some examples.
Regards,
Aravindakumar
V.Aravindakumar (Finance Professional) (25 Points)
12 April 2016Respected Sirs/Madam
In a Jewellery shop Gold Ornamets are exchanged against sale of new gold Ornaments for their customers. How to show the accounting entries, Please show with some examples.
Regards,
Aravindakumar
CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 12 April 2016
you can rec0rd them as purchases as any other purchases .
Exchange Goods record entry:
Purchases A/c 50
To X A.c 50
Sale Entry:
X A/c 100
To Sales A/c 100
Hence net cash wat ever recived is recorded in bank / cash.
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