Ram is running a readymade garment shop and sold his mother's saree worth rs 10000. What will be journal entry in this case? Please answer it asap.
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Journal entry for selling Mother's saree
Replies (10)
is his mother paid any sum or its simply ram gifted the saree to his mother.
Question not clear.You have to clearly mention that whether he rcvd some money or not regarding this sale?
Consideriation is passed then treatment will be normal sale & if consideration not passed then it will be treated as gift...!!!!
Sir please read it carefully. Ram used his mother's saree into business to make a cash sales.
lets assume he received cash from sale
sale to mother or sale of mother's saree ?? clarify
I think question is very clear. It said that Ram sold his mother'saree into his business nor he sold to his mother.
purchase from mother to sales if mother is paid..
Purchase a/c... Dr. 10,000
To capital a/c. 10000
(Being goods bought into the business)
Cash a/c.... Dr. 10000
To sales a/c. 10000
(Being goods sold for cash).
If this sale amount is taken by Ram and given to his mother., then journal entry is
Drawings a/c.... Dr 10000
To cash. 10000.
To capital a/c. 10000
(Being goods bought into the business)
Cash a/c.... Dr. 10000
To sales a/c. 10000
(Being goods sold for cash).
If this sale amount is taken by Ram and given to his mother., then journal entry is
Drawings a/c.... Dr 10000
To cash. 10000.
Agreed with vinod sir
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