Accounts Entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2011 Please help me to solve my problem.

Which will the accounting entry of that?

a bike worth 60000/- was given to our staff and2000/- will be deduct from his salary in 30 Months on monthly basis. his salary is15,000/- P.M

Rahul Gupta

Rahul Gupta (Expert)
Follow

14 January 2011 Entries will be >

1. On purchase of Bike >

Employee Advance....Dr 60,000
To Bank/Cash........Cr 60,000

2. On Monthly deduction
Salary A/c.........Dr 15,000
Bank/Cash..........Cr 13,000
Employee Advance...Cr 2,000

Regards

Message likes : 1 times

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

15 January 2011 In case the bike has been purchased by the company in its own name and transferred later to the staff then following entries may be done-

Bike A/c...........Dr. 60000
To Cash / Bank A/c ..Cr 60000

Salary A/c.........Dr 15,000
Bank/Cash..........Cr 13,000
Advance Against Bike A/c ...Cr 2,000

in this case bike will be transferred to the employee when the entire payment will be received. At that time following entry will be done -

Advance Against Bike A/c ....DR.60000
To Bike A/c....................60000

Company will claim the Depreciation in this situation , and if there is no asset in the said block , excess will be transferred to Profit on sale of Bike. (STCG)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

ASIM ATREY AND ASSOCIATES

CA Garima Bhatia

SHIBSANKAR DEY

RAHUL SURANA

CA.Pinank Arvindbhai Shah

Subscribe Now

Accounts Entry

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA