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Journal entry
AIR CONDITIONER shopkeeper uses AC for his own shop from his own stock of AC. what will be the journal entry
Replies (16)
First debit AC Account and credit supplier
Then debit supplier and credit bank
Then debit supplier and credit bank
When transaction done..
Drawing A/c Dr.
To Inventory (AC) A/c Cr.
As on 31 March
Capital A/c Dr.
To Drawing A/c Cr.
Drawing A/c Dr.
To Inventory (AC) A/c Cr.
As on 31 March
Capital A/c Dr.
To Drawing A/c Cr.
Dear you are not using it for house purpose, but using it in office, so Drawings account cannot be used
I am assuming that purchase entry has been done, So In the given case. Entry would be
A/C (Under Fixed Assets) ................. Dr.
AC Purchase..................................... Cr.
If you are using that AC from your stock.
| Originally posted by : Kumar Sushank | ||
 |
I am assuming that purchase entry has been done, So In the given case. Entry would be A/C (Under Fixed Assets) ................. Dr. AC Purchase..................................... Cr. If you are using that AC from your stock. |
 |
YES.... I FULLY AGREED.
Fixed Asset A/C Dr.
To Inventory A/C
To Inventory A/C
Fixed Asset dr.
cr. Inventory.
In house entry.
cr. Inventory.
In house entry.
Sorry in that Case, Entry passed by Sushank sir is absolutely correct.
Do you know this is called captive consumption.
the moment cr. / dr. purchase account
purchase ledger gets affected.
its better to cr. inventory.
the moment cr. / dr. purchase account
purchase ledger gets affected.
its better to cr. inventory.
The purchase entry posted if in purchase leger then it will be reverse from purchase head only...
Not a correct disclosure in financial statement.
No journal entry will take place in this scenario. However, you will need not to show the sale of that one AC which you installed in your shop. That one AC you will treat as fixed asset and charge depreciation on this.
Thanks for your reply everyone.
When the propritor will prepare financial statement he has to pass entries and post in respective ledgrr.
Mr. Sharma u are wrong.
Mr. Sharma u are wrong.
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