Journal entry required

dear all.. want journal entries for the following issue.. We want to take the sales return and take the finished goods into stock, but Since the Finished good is damaged the valuation has to be done for 10000/- instaed of2,30,354,billing date is 19/07/2009. thankyou regards - karthik

Replies (5)

If client demand for 100% credit for this transaction (sales return) then

 

Sales Return A/c Dr        230354/-           (pls bifurcate this entry as you did not mention the tax amount)

To Client   Cr                              230354/-

 

Then record a entry for damage of said stock

Damaged Stock Dr         220354/-

To Closing Stock  Cr            220354/-     (Select the stock item which has been got damaged)

Originally posted by : Harpreet

If client demand for 100% credit for this transaction (sales return) then

 

Sales Return A/c Dr        230354/-           (pls bifurcate this entry as you did not mention the tax amount)

To Client   Cr                              230354/-

 

Then record a entry for damage of said stock

Damaged Stock Dr         220354/-

To Closing Stock  Cr            220354/-     (Select the stock item which has been got damaged)

agreed

so how to account Rs.10000.00 which is in the question... is there any way to pass entries which affects only bal.sheet but not P& L a/c

as there are two transactions 

1) conversion of sold goods into scrap

2) credit note in favor of buyer

for credit note the entry is correct.

for conversion of sold goods into scrap pass  the value with the value of scrap generated aginst damaged goods

viz

1)

Damaged Stock Dr         220354/-

To Closing Stock  Cr            220354/-     (Select the stock item which has been got damaged)

2) Scrap a/c dr ................10000

to Damaged stock ......cr ..............10000

 

this will resolve the prob

Grouping of Scrap or Damage Stock (IInd Entry) should be Indirect Expense, so the P & L A/c finally got hit as you were asking about P&L.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details