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Give the adjustment entry of the following in case of a firm closes it's account at 31march 2012.goods costing rupees 5000 were sent to customer on sale on approval basis for rupees 64000 on 29 March 2012 and had been recorded in the books as actual sales?
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Give the adjustment entry of the following in case of a firm closes it...
Adjustment Entry for Goods Sent on Sale on Approval Basis
Background:
A firm has sent goods costing rupees 5000 to a customer on a sale on approval basis for rupees 64000 on 29 March 2012. However, these goods were mistakenly recorded as actual sales in the books.
Adjustment Entry:
To rectify this error and reflect the correct accounting treatment for goods sent on sale on approval basis, the following adjustment entry should be made:
- Adjustment Entry Date: 31 March 2012
- Accounting Rules:
1. Debit the Sales on Approval Account by the amount of goods sent on sale on approval basis (rupees 64000).
2. Credit the Sales Account by the same amount (rupees 64000).
- Explanation:
- The adjustment entry is made to correct the erroneous recording of the goods sent on sale on approval basis as actual sales in the books.
- By debiting the Sales on Approval Account, the incorrect sale amount of rupees 64000 is reversed, reducing the reported sales.
- By crediting the Sales Account, the incorrect sale amount of rupees 64000 is reversed, reducing the reported sales revenue.
- This adjustment entry ensures that the financial statements reflect the accurate position of the firm's sales and revenue.
Summary:
To correct the error of recording goods sent on sale on approval basis as actual sales, an adjustment entry is made by debiting the Sales on Approval Account and crediting the Sales Account. This adjustment ensures that the financial statements present the correct sales and revenue figures for the firm.
Background:
A firm has sent goods costing rupees 5000 to a customer on a sale on approval basis for rupees 64000 on 29 March 2012. However, these goods were mistakenly recorded as actual sales in the books.
Adjustment Entry:
To rectify this error and reflect the correct accounting treatment for goods sent on sale on approval basis, the following adjustment entry should be made:
- Adjustment Entry Date: 31 March 2012
- Accounting Rules:
1. Debit the Sales on Approval Account by the amount of goods sent on sale on approval basis (rupees 64000).
2. Credit the Sales Account by the same amount (rupees 64000).
- Explanation:
- The adjustment entry is made to correct the erroneous recording of the goods sent on sale on approval basis as actual sales in the books.
- By debiting the Sales on Approval Account, the incorrect sale amount of rupees 64000 is reversed, reducing the reported sales.
- By crediting the Sales Account, the incorrect sale amount of rupees 64000 is reversed, reducing the reported sales revenue.
- This adjustment entry ensures that the financial statements reflect the accurate position of the firm's sales and revenue.
Summary:
To correct the error of recording goods sent on sale on approval basis as actual sales, an adjustment entry is made by debiting the Sales on Approval Account and crediting the Sales Account. This adjustment ensures that the financial statements present the correct sales and revenue figures for the firm.
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Give the adjustment entry of the following in case of a firm closes it's account at 31march 2012.goods costing rupees 5000 were sent to customer on sale on approval basis for rupees 64000 on 29 March 2012 and had been recorded in the books as actual sales?
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Give the adjustment entry of the following in case of a firm closes it's account at 31march 2012.goods costing rupees 5000 were sent to customer on sale on approval basis for rupees 64000 on 29 March 2012 and had been recorded in the books as actual sales? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Give the adjustment entry of the following in case of a firm closes it's account at 31march 2012.goods costing rupees 5000 were sent to customer on sale on approval basis for rupees 64000 on 29 March 2012 and had been recorded in the books as actual sales? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Give the adjustment entry of the following in case of a firm closes it's account at 31march 2012.goods costing rupees 5000 were sent to customer on sale on approval basis for rupees 64000 on 29 March 2012 and had been recorded in the books as actual sales?.
Give the adjustment entry of the following in case of a firm closes it's account at 31march 2012.goods costing rupees 5000 were sent to customer on sale on approval basis for rupees 64000 on 29 March 2012 and had been recorded in the books as actual sales? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Give the adjustment entry of the following in case of a firm closes it's account at 31march 2012.goods costing rupees 5000 were sent to customer on sale on approval basis for rupees 64000 on 29 March 2012 and had been recorded in the books as actual sales? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Give the adjustment entry of the following in case of a firm closes it's account at 31march 2012.goods costing rupees 5000 were sent to customer on sale on approval basis for rupees 64000 on 29 March 2012 and had been recorded in the books as actual sales?.
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