karthik (student) (34 Points)
10 May 2011dear all.. want journal entries for the following issue.. We want to take the sales return and take the finished goods into stock, but Since the Finished good is damaged the valuation has to be done for 10000/- instaed of2,30,354,billing date is 19/07/2009. thankyou regards - karthik
Harpreet
(* * * * * *)
(1670 Points)
Replied 10 May 2011
If client demand for 100% credit for this transaction (sales return) then
Sales Return A/c Dr 230354/- (pls bifurcate this entry as you did not mention the tax amount)
To Client Cr 230354/-
Then record a entry for damage of said stock
Damaged Stock Dr 220354/-
To Closing Stock Cr 220354/- (Select the stock item which has been got damaged)
| Originally posted by : Harpreet | ||
 |
If client demand for 100% credit for this transaction (sales return) then Sales Return A/c Dr 230354/- (pls bifurcate this entry as you did not mention the tax amount) To Client Cr 230354/- Then record a entry for damage of said stock Damaged Stock Dr 220354/- To Closing Stock Cr 220354/- (Select the stock item which has been got damaged) |
 |
agreed
karthik
(student)
(34 Points)
Replied 10 May 2011
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 10 May 2011
as there are two transactions
1) conversion of sold goods into scrap
2) credit note in favor of buyer
for credit note the entry is correct.
for conversion of sold goods into scrap pass the value with the value of scrap generated aginst damaged goods
viz
1)
Damaged Stock Dr 220354/-
To Closing Stock Cr 220354/- (Select the stock item which has been got damaged)
2) Scrap a/c dr ................10000
to Damaged stock ......cr ..............10000
this will resolve the prob
Harpreet
(* * * * * *)
(1670 Points)
Replied 11 May 2011
Grouping of Scrap or Damage Stock (IInd Entry) should be Indirect Expense, so the P & L A/c finally got hit as you were asking about P&L.
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