Accounting entries

Hi Sathis,

As far as i know the enteries which will be passed and their effect also are as follows:-

1) Salary a/c  Dr.         8590

        To P.F. A/c                             1030

         To TDS on salary                   200

         To salary payable                   7360

(Being salary payable for the month of March 10)

effects:

Salary a/c will go to debit side of P&L following entry will be passed

P&L a/c         Dr.         8590

To Salary a/c                           8590

and all salary payable,  P.F & TDS will be shown under current liabilities in Balance Sheet.

5) machinery purchased :-

Machinery a/c Dr. 50,000

To cash/Bank/creditor                   50,000

If machinery purchased on credit then party from whom machinery is purchased will be shown under sundry creditors on liability side in balance sheet.

Machinery will be added in machiney amount will be shown in asset side of balance sheet.

6)  Depreciation on machinery Dr.     792

       To  Depreciation reserve ac                    792

(Being depreciation charged on 50,000 @ 4.75% p.a for 4 months only)

Depreciation on machinery will be debited to P&L and depreciation reserved will be added to depreciatio reserve and will be shown on liability side under provisions in balance sheet.

7) salary is not paid till 31st march so it will be shown as liabilities as soon as it will be paid following entry will be passed in next year

Salary payable         7360

To cash/ Bank                                7360.

I think you have got the point.

Regards,

Gaurav

Thanks to all,

I got the answer.

Regards

Sathis