PLS SOLVE MY A/C ENTRY PROBLEM

Cash A/c          Dr           5200

Prov for Dep    Dr             400

Wages              Dr                50

Commission     Dr              320

           To  Machinery                 4000

           To P/L                              1970

        (This is profit on sale of machinery)

as per iam considered the wages we have paid  are not our regular bussiness wages .so we have to deduct  wages commission,etc from sale consideratin, then pass entry

wages account & commission account will not be debited & that amount combined should be debited to selling expenses account.

I think the profit should be 1230 (5200-(4000-400)-320-50)

YES THE PROFIT IS 

1230.

THAT IS.... SALE PROCEEDS - DIRECT EXP TOWARDS SALE - WDV OF THE MACHINERY.

THE ENTRY IS 

CASH A/C                        DR      5200

      TO MACHINERY A/C                       3600

      TO WAGES A/C                                  320

      TO COMMISSION A/C                         50

      TO P&L A/C                                        1230

1. Yes entries given by Navya are fine.

2. Hope you will pass the following entry on payment of Selling expenses

Wages A/c Dr           320

Commission A/c Dr     50

To Cash A/c              370

To Above all,

Can u plz make it clear hw cum Wages & Commission is being credited insted of being debited to P/L A/c.....

(1)bank a/c   dr         5200

      to machinery a/c 5200

 (2)provision for depreciation a/c dr   400

      to depreciation a/c   400

(3)depreciation a/c   dr  400

      to machinery a/c  400

(4)machinery a/c dr 1600

       to profit on sale of machinery a/c 1600

(5)profit on sale of machinery a/c dr  1600

        to p/l a/c          1600

(6)commission paid to selling agent a/c  dr 320

     wages paid to workers dr  50

   (for removing the machine)  

           to bank a/c     370  

 (7)and 

p/l a/c  dr  370

   to commission paid to selling agent  320

   to wages paid to workers   50

   (for removing the machine)   

and if i am wrong any where please correct me friends...........thanks 

kirti can u please say how 

and Navya 

please do the ledger of machinery once when the business entity is making provision for depreciation

u will find that u have to credit (net) 4000 and not 3600  because all the machineries are at cost and the provision for depreciation is deducted from the cost to give better presentation of accounts

ur profit part  ok...........thanks 

and if i m wrong some where please correct me

the above entry is in cash book and in p&l it will be debited.