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P&l b&s journal enteries

sathis (accounts executive) (311 Points)

15 September 2012

Dear All,

What are entries should pass the following and where it will affect in B&S & P&L.

Trail Balance as on 31 March 2010
	Debit	Credit
Depreciation - Reserve		24520
Plant & Machinery	54867
Salary	55000


Adjustments
1. Gross Salary for the month of Mar 2010 Rs.8590
2. PF Employee Contribution Rs.515
3. PF Employer Contribution Rs.515
4. TDS on Salaries Rs.200
5. Machinery purchased of Rs.50000 (but purchase on 01 dec 2009) not accounted
6. Depreciation @ 4.75% on Plant & Machinery at SLM method

Advance Thanks & Regards

Sathis

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1 Replies

Gaurav Joshi (M.Com) (44 Points)
Replied 19 September 2012

Hi Sathis,

As far as i know the enteries which will be passed and their effect also are as follows:- 1) Salary a/c Dr. 8590

To P.F. A/c 1030

To TDS on salary 200

To salary payable 7360

(Being salary payable for the month of March 10)

effects: Salary a/c will go to debit side of P&L following entry will be passed

P&L a/c Dr. 8590

To Salary a/c 8590

and all salary payable, P.F & TDS will be shown under current liabilities in Balance Sheet.

5) machinery purchased :-

Machinery a/c Dr. 50,000

To cash/Bank/creditor 50,000

If machinery purchased on credit then party from whom machinery is purchased will be shown under sundry creditors on liability side in balance sheet.

Machinery will be added in machiney amount will be shown in asset side of balance sheet.

6) Depreciation on machinery Dr. 792

To Depreciation reserve ac 792

(Being depreciation charged on 50,000 @ 4.75% p.a for 4 months only)

Depreciation on machinery will be debited to P&L and depreciation reserved will be added to depreciatio reserve and will be shown on liability side under provisions in balance sheet.

7) salary is not paid till 31st march so it will be shown as liabilities as soon as it will be paid following entry will be passed in next year

Salary payable 7360

To cash/ Bank 7360.

I think you have got the point.

Regards,

Gaurav