a electronic shop sold 1 T.V of Rs.2 lac to MR.A . he paid for the TV and give the address to deliver the product but the shop deliver the TV to wrong person and have to give new TV to MR . A so what is the accounting treatment for it ??
7 Replies
Kev Men
(788 Points)
Replied 07 May 2022
The treatment for the sales will be
Mr. A A/c Dr. 2lacs
To Sales A/c 2lacs
Bank A/c Dr. 2lacs
To Mr. A A/c 2lacs.
For delivery made to wrong person, there won't be any accounting treatment as the TV will be taken back in normal business situation. There is also no transaction here in reality.
Mr. A A/c Dr. 2lacs
To Sales A/c 2lacs
Bank A/c Dr. 2lacs
To Mr. A A/c 2lacs.
For delivery made to wrong person, there won't be any accounting treatment as the TV will be taken back in normal business situation. There is also no transaction here in reality.
Ks
(Ac)
(138 Points)
Replied 07 May 2022
the TV is not returned by the person who get the TV BY mistake then what is the accounting treatment
prasad Nilugal
( GST Practitioner & Accounts )
(14803 Points)
Replied 07 May 2022
If No Money is received against T.V set then same will be loss for Business , so entry in the books of electronic shop .
Loss of T.V A/c Dr
To purchase A/c Cr
( Loss of a T.V set )
Note- Reduce one T.V set from stock journal .
Loss of T.V A/c Dr
To purchase A/c Cr
( Loss of a T.V set )
Note- Reduce one T.V set from stock journal .
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 08 May 2022
No...
this is not a legal transaction then it's not acceptable.
So, TV will be return.
this is not a legal transaction then it's not acceptable.
So, TV will be return.
prasad Nilugal
( GST Practitioner & Accounts )
(14803 Points)
Replied 08 May 2022
Wrongly Delivered T.V was not return by the Customer same is loss for Business , is the 2nd query above .
Ks
(Ac)
(138 Points)
Replied 08 May 2022
can we also record it as
loss of goods/T.V DUE to wrong delivery A/C dr
to purchase A/C CR
prasad Nilugal
( GST Practitioner & Accounts )
(14803 Points)
Replied 08 May 2022
Yes correct , same entry I have pass above , but at the same time you have to reduce one TV set from stock.
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