Journal entries

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2012 1)a cheque of Rs. 7330 received from Mr. Raman,after allowing discount of Rs 70.this cheque endorsed to Mr. Ramesh for full & final settelement of Rs.7500

2)Rent due but not yet paid of Rs 15000 for the month of March 2012

3)Debit note issued to Mr.X for purchased return of Rs.10000(includes TDS of Rs.500)

4)Purchased 10 computers of Rs 200000 and received mobile set of Rs 5000 as a gift and the mobile phone issued for official use.

Please tell me journal entries for above transactions.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

15 May 2012 In the books of "Anonymous" First entry Debit bank a/c 7330 Debit discount 70 Credit Raman 7400 Second entry (For endorsement) Debit Ramesh 7500 Credit Bank 7330 Credit Discount received 170 If you wish, you can club both the entries. Debit Ramesh 7500 Credit Raman 7400 Credit Discount received 100

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

15 May 2012 1.

Ramesh A/c Dr 7,500
Discount Allowed A/c Dr. 70
To Raman 7,400
To Discount Received 170

2.
Rent A/c Dr
To Rent Payable

3.
Mr. X A/c Dr 9,500
TDS Payable A/c Dr 500
To Purchase Return 10,000

4.
Computers A/c Dr 20,000
To Creditor/Bank 20,000

No entry will be passed for mobile phone received as gift.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

CA Syed Raza Abbas Rizvi

CA Syed Raza Abbas Rizvi (Expert)
Follow

15 May 2012 Mr Ramesh dr 7500
discount paid a/c dr 70
to Mr. Raman 7400
to Discount recd. 170

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2012 Thanks for all ur quick replies.
But I have more confusion about endorsement

if the combined entry is more valid or the seperate entry showing bank a/c is requred?

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

15 May 2012 From disclosure point of view, separate entry is preferred to consolidated entry.

Message likes : 1 times

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

15 May 2012 You cannot debit and credit bank account because there have been no transactions with the bank.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

15 May 2012 You can very well debit and credit the bank account. For a fraction of second might be, you had been the owner of the cheque. ( Basically try to understand that the query is purely theorotical) Practically NO BANK in INDIA accepts CHEQUE endorsement.

Upgrade to CAclubindia Pro. Subscribe Now!