How to journalize?

337 views 2 replies

Rajesh Raman

292 Points Joined June 2011

X is a proprietor doing the business of distributor of D2H and sales and services of electronic devices ie:- Samsung, LG, Sony TV How to Journalize the following transaction

Spare item purchased = It is used for accompanied with the main product = eg wall bracket is used to fix LCD TV on wall
Is the Conveyance allowance paid to staff is accounted as Conveyance allw. Or Travelling Exp
Incentive paid for servicing
Festival allowance paid
Cable tv subscriptttion
Plastic chair, table purchased for office
Proprietors personal Telephone bill

Replies (2)

Irfan Butt

Internship for Chartered Accountant

26 Points Joined October 2013

Q) Spare item purchased = It is used for accompanied with the main product = eg wall bracket is used to fix LCD TV on wall
Ans: If the amounts is big then show as inventory or else charge to P&L .

Q) Is the Conveyance allowance paid to staff is accounted as Conveyance allw. Or Travelling Exp.

Ans: Travelling Expenses.

Q) Incentive paid for servicing

Ans: Professional chrges.

Q) Festival allowance paid

Ans: Bonus.

Q)Cable tv subscriptttion
Ans: Office expense if it is for the business use or else drawings.

Q) Plastic chair, table purchased for office
Ans: If the amounts is big then show as Fixed Asset or else charge to P&L.

Q) Proprietors personal Telephone bill

Ans: Drawings