Journal entries for the following :-
- Paid RS . 250 as wages on installation of a machine
- suupplied goods costing RS.600 to shakuntala . Issued invoice at 10% above cost less5% trade discount
- paid customs duty rs.11,000 in cash on import of a new machinery
- Purchased car for RS.3,00,000 by taking loan of RS.2,50,000
- purchased goods from Sarah for RS.30000 (is it a credit purchase , how ? )
- stock in hand RS . 20000
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
1 | Machinery A/c | Dr. |
| 250 |
|
| To Cash A/c |
|
| 250 | |
| (Wages paid on installation of Machinery) |
|
|
| |
|
|
|
|
| |
2 | Shakuntla | Dr. |
| 627 |
|
| To Sales A/c (WN1) |
|
| 627 | |
| (Goods sold to Shakuntla on credit) |
|
|
| |
|
|
|
|
| |
3 | Machinery A/c | Dr. |
| 11,000 |
|
| To Cash A/c |
|
| 11,000 | |
| (Custom duty paid on purchase of Machinery is Capitalised in the value of Machinery) |
|
|
| |
|
|
|
|
| |
4 | Car A/c | Dr. |
| 3,00,000 |
|
| To Loan A/c |
|
| 2,50,000 | |
| To Cash A/c |
|
| 50,000 | |
| (Car purchased of Rs 3,00,000 by taking Loan of Rs 2,50,000 and balance paid in Cash) |
|
|
| |
|
|
|
|
| |
5 | Purchases A/c | Dr. |
| 30,000 |
|
| To Sarah |
|
| 30,000 | |
| (Goods purchased on Credit) |
|
|
| |
|
|
|
|
| |
6 | Stock in Hand A/c | Dr. |
| 20,000 |
|
| To Capital A/c |
|
| 20,000 | |
| (Opening entry) |
|
|
| |
|
|
|
|
| |
Working Notes:
WN1 Calculation of Sale Value:
Particulars | Amount (Rs) |
Cost of the Goods | 600 |
Add: Profit Margin @ 10% | 60 |
Invoice Value | 660 |
Less: Trade Discount @ 5% | (33) |
Sale Value | 627 |
WN2 In the point no. 5, it is given that goods were purchased from Sarah. As name of the Person from whom goods were purchased is clearly mentioned and also it is not provided that these goods were purchased in Cash. Therefore, this is treated as credit purchases.