Dear All,
Please Pass Accounting Entry for the following Adjustmnets...
Our Company purchase Goods and stores in a warehouse for which we give rent for them...
On stock taking we found that some goods has been lost from the warehouse and the warehuse company agreed to compensate (for eg: Rs.2000) for the lost goods,
We booked all invoices (invoice issued for space used for lost quantity also) from the party and adjusted the compensation on settlement of Invoices...
So, an entry to be passed by debiting the pary :-
I have given three entries below which is more appropriate and why..?
1) Party A/c Dr 10,000
Cash A/c 8,000
Rent 2,000
2) Party A/c Dr 10,000
Cash A/c 8,000
Purchases 2,000
3) Party A/c Dr 10,000
Cash A/c 8,000
Sales 2,000
Note:-
The lost Stock is to be reduced from system
CAclubindia
