Explanation for a journal entry

Page no : 2

know your self (knowledge is power of student) (98 Points)
Replied 17 October 2012

I thing so its eg. of goods in lieu of salary

so in generaly employer will not charge profit from employee

or he may be give at some discount for yourr Q its assume that goods given at cost

so entry will be

salary a/c........................Dr. 7500

To sale 7500

[so this will be abnormal sale for calculation of G.P %]

To avoid above problem follow this one

1.employee's a/c..........Dr 7500

discount a/c..............Dr. 2500

To sales 10000

2.salary a/c.................Dr. 7500

To employee's a/c 7500

I hope so this one is correct....

Manjeet Singh (B.Com) (24 Points)
Replied 02 August 2013

if any employer has purchased somethings which is used in bussiness, but he has not the bill of purchase item so can we treat as personal expense or office expenses

ganesh reddy (2 Points)
Replied 07 May 2019

what about the term subsequent months

Puneet Yadav (4 Points)
Replied 16 October 2020

I think you also done the wrong entry because employee take an asset of the company not the goods so the entry must be Salary a/c Dr. 7500 To Purchases a/c. 7500 Because at the the of purchase we had an entry Purchases a/c. Dr. To cash/bank a/c So now we have to sell purchase a/c must be credited because it is taken by on of the employee

Puneet Yadav (4 Points)
Replied 16 October 2020

Ans 1. As per the golden rules of accounts i m explaining this to you and answer is that the employee is taking our asset plzz kept this thing in your mind Second thing is that when you purchase an asset the entry is Purchase a/c dr. To asset And then if you gave this to your employee against salary then it also is a salary but the only thing is that is not paid in cash but paid in kind so salary must be debited and then you have to gave your asset then purchase must be credited because at time of purchase it is debited now it have to be credited because you gave this to your employee And 2. The answer of your second question is that the salary of the employee is 7500 and we gave stock to him against his salaries so we take 7500 as amount I hope you understood

Sriram Ramesh (2 Points)
Replied 28 February 2022

If sales is credited then its the revenue from opertions of your entity, which constitutes Trade Recievables of your entity and not as an expense, But if you credit purchases then the stock/inventory would automatically reduce and compensate the matching concept.