Arvind Sharma (ACA) (1432 Points)
21 June 2011Hey Guys Please tell me what will be appropriate journal entry for the following transaction.... :-
There is an offer that on purchase of 200 T-shirt, 50 T-shirt will be free.
200 T-Shirt purchased by Company @ 200 per unit for employees..
Tell me what will be journal entry...
Thanks in advance...
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 22 June 2011
purchased for employees uniform
uniform exp. ac--------------dr.
to party ac.
(being purchase of 200 shirts and received 50 shirts free)
ashish gupta
( student)
(1922 Points)
Replied 22 June 2011
agree with future c.a. this is not the purchase of goods, so no problems just pass the entry suggested by future c.a.
Rajnikant Vadigoppula
(CA, CS And CMA Final)
(919 Points)
Replied 22 June 2011
just consider the cost is 40000 for 250 shirts pass journal entry accordingly.
if company is dealer/trader of t-shirts then
purchase a/c ..............................Dr 40000
To creditor a/c 40000
if for employees
Stalff Maintenance (uniform) a/c ...................Dr 40000
To Creditor a/c 40000
Rockstar D
(Student CA FINAL)
(74 Points)
Replied 22 June 2011
i have an query pls tell me why we debit the uniform a/c alternatively is it be the staff welfare a/c?and if we considered it uniform a/c then as per income tax act,1961.............the treatment would be different.
Vikash Kharvar
(Dy. Manager -F&A)
(469 Points)
Replied 22 June 2011
satish kumar Chauhan
(accountant)
(344 Points)
Replied 23 June 2011
Dr staff welfare a/c Rs. 40000/-
cr creditor a/c Rs. 40000/-
Being 200 T shirts purcahsed @ 200/- ad received 50 T shirs free
Arvind Sharma
(ACA)
(1432 Points)
Replied 23 June 2011
thanks to all for your replies.....
The doubt is about that free purchase...
That means it will mentioned in naration and no journal entry will be passed for that...???
CA Hemant Kumar
(CA, LLB (p), B.Com)
(204 Points)
Replied 23 June 2011
yes no journal entry for the free items will be passed...
but for costing purpose it will reduce the per unit cost of purchase of uniforms....
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 23 June 2011
gross value should be debited, for gross number of items received including the free items.
Jitendriya swain
(sr.accounts officer)
(31 Points)
Replied 23 June 2011
staffwelfare A/c- Dr
To Party A/c
CA Aditya Modi
(Associate Manager)
(159 Points)
Replied 13 July 2011
U should pass the entry
Purchase A/C dr.............200*200
To Crs
( Being 200 T shirts purchased and 50 Tshirts free )
in the stores module u should account for 250 T shirts.
Amit A Kadam
(Account Officer)
(33 Points)
Replied 14 July 2011
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
