Explanation for a journal entry


avater

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh))     13 October 2012

CA Lokesh Pokharna
CA (Ahmedabad Bhilwara Chittorgarh) 
 355 likes  4123 points

View Profile | My Other Post

purchase deducted only in case of goods lost or destroyed, theft or drawings.

otherwise sales should be credited

avater

CA. JAIN (Chartered Accountant)     13 October 2012

CA. JAIN
Chartered Accountant 
 73 likes  466 points

View Profile | My Other Post

My view is that..

if employee ledger account maintain

1.Salary Account Dr  (with monthly salary)

  To employee Account

2.employee Account Dr.

  To sales Account

(its depend on amount at which goods are given to employee, doesnt matter what is cost or selling price)

3.Employee account Dr.

To Cash/Bank A/c(with balance amount given to employee, if any)

   if employee account is not maintain                      

Salary Account Dr(total salary)

      To sales(agreed amount of goods btn employer and employee)

       To cash/Bank(remaining amount paid)

Note; first way is more explaining and appropriate

avater

nikhil shah (B.Com)     13 October 2012

nikhil shah
B.Com 
 28 points

View Profile | My Other Post

journal entry will be this

employees a/c debit rs.7500/-

 to sales a/c rs.7500/-

VJ Siva Swaroop (CA Final (Group I Cleared))     13 October 2012

VJ Siva Swaroop
CA Final (Group I Cleared) 
 2 likes  28 points

View Profile | My Other Post

I dont understand the difference between cost and worth. Stock is recognised at cost as per AS2 (NRV in some exceptional cases)

My entry will be this:-

 

Salaries payble a/c dr 10,000

to Sales a/c                              10,000

(Being sales accounted)

-----------------------------------

avater

venkata akarsh.grandhi (articles assistant)     16 October 2012

venkata akarsh.grandhi
articles assistant 
 6 likes  185 points

View Profile | My Other Post

according to my views

the journal entry  is

salaries a/c      dr.          7500

        To Purchases a/c               7500

if any employee had taken goods from the company then it should be treated as drawings that made by the propreitor.

for propreitor

the entry will be

Drawings a/c        dr.     7500

    To   Purchases a/c            7500

in this present case:- employee is taking the goods from the business and now salaries should be debited with 7500 only.

if any employee has taken the goods from the business concern then they will take at the cost price only  and not at the selling price.

 

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

know your self
knowledge is power of student 
 8 likes  98 points

View Profile | My Other Post

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)     02 August 2013

Manjeet Singh
B.Com 
 24 points

View Profile | My Other Post

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

avater

ganesh reddy   07 May 2019

ganesh reddy

 2 points

View Profile | My Other Post

what about the term subsequent months


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  




Popular Discussion


view more »