Plz give this journal entry

Both purchases & sales are right

but dont forget to write a note to ur answer as to y u credit purchase( bcz u assume that raw material stock is taken out)

Or u r crediting sales bcz u asuume that finished goods stock is taken out....

This is necessary bcz question is not clear abt it.

I hope u got ur answer Kckinn

Tarun ma frnd u r 100% right..

Thanks each and everyone for the answers.

I have got my doubt clarified.

According to me

If taken at cost than

Adv. salary A/c. Dr.  7500

  to Sales  7500

And if at SP than

Adv. salary A/c. dr. 10000

  to Sales A/c.

Because sales can be at both cost or SP

To credit it to Purchase is not a right treatment

the journal will be

when stock was taken over

                                         salary in adavanceA/C 

                                                     to purchases A/C 

 when subsequently deducted from

                                     salary salary A/c

                                            to salary In Advance a/c

it should not be taken at cost price. if taken that balance RS.2500 become extra emoluments.

can i know the reason for crediting purchase account when the company has givven stock to employee. sales account should have been credited  i think.

answer to above question depends on at what price it is given to mohan. if given at SP price following is the entry.

when stock was given                                                                                                                                                                                                   

mohan A/c 10000   to sales a/c   10000

when subsequently deducted from salary

     salary a/c 10000     to mohan A/c 10000

above transaction should be recognised as sale and should shown at rs.10000. when given at CP price

             when stock given     mohan A/C 7500

                                                benefits to employees a/c 2500          to sales A/c 10000

when subsequently deducted     salary A/C 7500   to Mohan A/c 7500

if given at sp  mohan A/c 10000     to sales A/C 10000 and salary a/c 10000  to mohan a/c 10000

if given at Cost orice   mohan a/c 7500  benefits  employees a/c 2500  to sales 10000  and salary 7500   to mohan a/c 7500

FIRST RAISE THE BILL AGST MOHAN AND THEN 2nd ENTRY WOULD BE:

DR. SALARY EXPS. A/C 10000.00

CR. MOHAN A/C               10000.00

heres the entry.....

 on the event of taking of goods---

 salary in advance a/c    Dr.       7500

         To purchases a/c                         7500

 on salary becoming due

salary a/c              Dr.        7500

      To salary in advance a/c      7500