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regarding entries

anand (accountant) (90 Points)

30 March 2019

I have purchase a cloth of rs. 150000/-after that I have paid tailoring charges rs. 9000/- for
bed sheet making. pls suggest entries for tailoring charges

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6 Replies

NAVEEN SINGH (Legal Consultancy) (37 Points)
Replied 30 March 2019

Dear Anand,

All accounting ledgers are related to their nature of business transactions. In this situation you have to Debit Tailoring charges(under direct exps. head) and have to credit party account.

Regards,

Naveen(9716822331)

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NAVEEN SINGH (Legal Consultancy) (37 Points)
Replied 30 March 2019

Dear Anand,

All accounting ledgers are related to their nature of business transactions. In this situation you have to Debit Tailoring charges(under direct exps. head) and have to credit party account.

Regards,

Naveen(9716822331)

anand (accountant) (90 Points)
Replied 30 March 2019

thank you for reply sir but tailor exp. related to finished goods.
actually i have purchase cloth Rs. 150000/- and after tailor in charges cloth converted to finshied goods ( Bed sheet) if i booked tailor in exp in exp than how to calculate bed sheet cost

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 30 March 2019

direct expenses

entry

tailoring charges dr

to party / cash

NAVEEN SINGH (Legal Consultancy) (37 Points)
Replied 30 March 2019

Dear Anand,

Like purchase is a direct exp. Tailoring and other exps. related to finished products (i.e., direct exps.) are the components for making products saleable. Eg. if you purchase any goods freight and packaging not include in the cost of material purchase because its the part of exps not related material cost.

Regards,

Naveen Singh(9716822331)