Journal entry
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 October 2013
journal entry for $6000 stolen from the safe of the firm will be:
cash embezzlement a/c dr.
to cash a/c
why not:
p&l a/c dr.
to cash embezzlement a/c
please explain!
cash embezzlement a/c dr.
to cash a/c
why not:
p&l a/c dr.
to cash embezzlement a/c
please explain!
06 October 2013
final result of the first entry will be your second entry. first entry just have track of loss. once the police inquiry formalities are completed, we need to take as abnormal loss to the extend of amount recoverd & insurance claim and debit the p&l a/c
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06 October 2013
your both entries are correct,
1st you have to reduce the cash balance {as the cash have been stolen so the Cash reduced} that's the 1st entry,
then you have to write off it in P/L A/c. i.e 2nd Entry...
regards,
1st you have to reduce the cash balance {as the cash have been stolen so the Cash reduced} that's the 1st entry,
then you have to write off it in P/L A/c. i.e 2nd Entry...
regards,
Message likes :
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07 October 2013
1)Credit should be given to Cash Account only because there is no cash,,it was stolen
2)Debit can be given to Profit and loss account
2)Debit can be given to Profit and loss account
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