Plz give this journal entry

I THINK THE AMOUNT WILL BE REDUCED FROM THE PURCHASE A/C

IN THIS CONTEXT THE ENTRY DONE BY MR. PARAS JAIN  MR. GARJESH IS RIGHT. SINCE THE STOCK IS USED WITHIN THE BUSINESS AND NOT TO THE CUSTOMER,

The following entry would come:

1)Salary in advance A/c Dr 7500

To purchases A/c * 7500

or

2) Salary in Advnace a/c Dr. 7500

To GOods/ Stock A/c *** 7500

Note: 1) It is assumed that goods are sold to employee at cost price.

2) *FIfo method is assumed 3)*** LIFO method of inventory is assumed.

Hi all,

Anybody plz tell me what is d difference between closely held and widely held company.

salaries a/c dr      10000

to profit                              2500

to purchases                   7500

Salaries A/C      Dr.     7500

   To purchases A/C              7500

Entry in Ist month

Loan to Employees  Dr.     10000

To Purchases                                     7500

To Profit                                               2500

In next month

Salary A/c Dr.                10000

To Loan to Employee                  10000

i think

salary advance a/c   7500

         to Purchase a/c       7500

rite...

Aswer will be like this

Mohan a/c Dr 10000

To sales  10000

when paying salary entry will be like this

salary a/c Dr 10000

To mohan a/c  10000. you can not treat it as salary advance since it is sales as like sales made to other customers.

according to me:

1) if given on SP

salary advance a/c 10000

         to sales                        100000

2)if give on CP  7500

salary advance                  7500

to purchase