digambar singh (head incharge) (27 Points)
18 November 2010
Kirti Bhauka
(CA Final - Student)
(109 Points)
Replied 18 November 2010
sajay kumar
(IPCC STUDENT)
(162 Points)
Replied 19 November 2010
as per iam considered the wages we have paid are not our regular bussiness wages .so we have to deduct wages commission,etc from sale consideratin, then pass entry
CA ABHISHEK
(JOB)
(82 Points)
Replied 20 November 2010
wages account & commission account will not be debited & that amount combined should be debited to selling expenses account.
venkatesh
(articles)
(28 Points)
Replied 20 November 2010
I think the profit should be 1230 (5200-(4000-400)-320-50)
navya
(STUDENT)
(1762 Points)
Replied 20 November 2010
YES THE PROFIT IS
1230.
THAT IS.... SALE PROCEEDS - DIRECT EXP TOWARDS SALE - WDV OF THE MACHINERY.
THE ENTRY IS
CASH A/C DR 5200
TO MACHINERY A/C 3600
TO WAGES A/C 320
TO COMMISSION A/C 50
TO P&L A/C 1230
Kumar
(CA)
(666 Points)
Replied 21 November 2010
1. Yes entries given by Navya are fine.
2. Hope you will pass the following entry on payment of Selling expenses
Wages A/c Dr 320
Commission A/c Dr 50
To Cash A/c 370
Kirti Bhauka
(CA Final - Student)
(109 Points)
Replied 22 November 2010
Ankur
(Ipcc student)
(332 Points)
Replied 22 November 2010
(1)bank a/c dr 5200
to machinery a/c 5200
(2)provision for depreciation a/c dr 400
to depreciation a/c 400
(3)depreciation a/c dr 400
to machinery a/c 400
(4)machinery a/c dr 1600
to profit on sale of machinery a/c 1600
(5)profit on sale of machinery a/c dr 1600
to p/l a/c 1600
(6)commission paid to selling agent a/c dr 320
wages paid to workers dr 50
(for removing the machine)
to bank a/c 370
(7)and
p/l a/c dr 370
to commission paid to selling agent 320
to wages paid to workers 50
(for removing the machine)
and if i am wrong any where please correct me friends...........thanks
Ankur
(Ipcc student)
(332 Points)
Replied 22 November 2010
kirti can u please say how
Commission Dr
To P/L
To Machinery
wages and commission paid
wagesa/c dr
commission a/c dr
to bank a/c
Expenses are debited in p/l account
to Wages
toCommission
and if u are thinking about crediting in machinery account ...i will say u not to do that because u r keeping here machinery at cost and the net amount in ledgers should be 4000
say for example ur having machinery of 50000 and u sell 5000 of it so cost price shown in balance sheet should be (50000-5000) =45000 and from this the provision for depreciation or accumalated depreciation will be deducted
and if i am some where wrong please correct i will be obliged.....thanks
Ankur
(Ipcc student)
(332 Points)
Replied 22 November 2010
and Navya
please do the ledger of machinery once when the business entity is making provision for depreciation
u will find that u have to credit (net) 4000 and not 3600 because all the machineries are at cost and the provision for depreciation is deducted from the cost to give better presentation of accounts
ur profit part ok...........thanks
and if i m wrong some where please correct me
CA ABHISHEK
(JOB)
(82 Points)
Replied 22 November 2010
CA ABHISHEK
(JOB)
(82 Points)
Replied 22 November 2010
the above entry is in cash book and in p&l it will be debited.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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