JOURNAL ENTRY

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ROBINSON

ROBINSON (Querist)
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22 January 2009 What will be the journal entry of goods given away as charity by the proprietor?

Mukund

Mukund (Expert)
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22 January 2009 Dr to Donation or Charity A/c
& Cr to Purchases A/c

C A GROUP COACHING

C A GROUP COACHING (Expert)
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22 January 2009 DR PROPRIETOR CAPTIAL / DRGS A/C
CR TO GOODS / SALES (AT COST)

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CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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23 January 2009 Drawing A/s dr

To goods given as charity

Whatever the propritor take it woul fall within the meaning of drawing .. so there is no chance to account any other accounts.it is wrong if somebody shows as goods given to charity...it is wrong....

secondly it is not sales if we gicven credit to sales it is alos wrong as it is not a sales, we are just giving the goods as charity... it would be deducted from purchase so that gp would be coming down...