HI
Suppose I purchaesd a A/C Machine for Rs 30000/- for my business organisation & received a mobile set of Rs 6500 as gift so plz tell me what will be the journal entry of that mobile set if that is not used for officila purpose.
Thanks
Arindam
4 Replies
CA Vishal kapoor
(Partner)
(320 Points)
Replied 23 September 2011
Fo r Machinery purchased entry will be
Machinery A/c DR
To Bank/Cash
if machinery is also received as gift than entry will be
Machinery A/c DR
To Capital A/c
& mobile phone rec as gift used for personal purpose , no entry would be passed in Books.
Ateeq
(CA - Final)
(218 Points)
Replied 23 September 2011
The other alternative can be,
Say the machine you have purchased brought you a gift. The investment towards the machine has been met from the business. So the worth of phone can be adjusted against AC.
Say, Business entity concept. If you have bought some thing for the business then its related thing will also be stand as the property of the business. Now the question will be how much amount is to be adjusted? You prefer the net realisable value of the phone as on that date and can be adjusted in the following way,(If so desire): -
Machinery with Gift A/c Dr.
To Cash/Bank A/c.
Being Machinery purchased..................................!
AC A/c Dr. XXXX
Mobile A/c Dr. XXXX
To Machinery with Gift A/c. XXXXXX
and at the time of withdrawing the same for personal use
Capital A/c Dr. XXXX
To Mobile A/c. XXXX
(Note: -The above one is alternative only not mandatory since the amount of mobile is reasonably less)
Ateeq
(CA - Final)
(218 Points)
Replied 23 September 2011
The other alternative can be,
Say the machine you have purchased brought you a gift. The investment towards the machine has been met from the business. So the worth of phone can be adjusted against AC.
Say, Business entity concept. If you have bought some thing for the business then its related thing will also be stand as the property of the business. Now the question will be how much amount is to be adjusted? You prefer the net realisable value of the phone as on that date and can be adjusted in the following way,(If so desire): -
Machinery with Gift A/c Dr.
To Cash/Bank A/c.
Being Machinery purchased..................................!
AC A/c Dr. XXXX
Mobile A/c Dr. XXXX
To Machinery with Gift A/c. XXXXXX
and at the time of withdrawing the same for personal use
Capital A/c Dr. XXXX
To Mobile A/c. XXXX
(Note: -The above one is alternative only not mandatory since the amount of mobile is reasonably less)
Anil.M.Saraswat
(CA-Final Student)
(62 Points)
Replied 27 September 2011
According to me,The entry will be:
Machinery A/c Dr. 23500(30000-6500)
Capital A/c Dr. 6500
To cash/Bank A/c 30000
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