1. Supplied goods costing Rupees 6000 to Rajesh issued invoice at 10% ...
Journal Entries for Business Transactions
1. Goods Supplied with Invoice
Debit: Rajesh's Account - Rs. 6600
Credit: Sales Account - Rs. 6000
Credit: Discount Received Account - Rs. 300
Explanation: The cost of goods supplied is Rs. 6000, and a 10% markup is added to it to make it Rs. 6600. A 5% trade discount is given to Rajesh, which reduces the amount by Rs. 300.
2. Theft of Goods
Debit: Theft Account - Rs. 5000
Credit: Cash Account - Rs. 2000
Credit: Purchases Account - Rs. 3000
Explanation: An employee has stolen goods worth Rs. 5000, out of which Rs. 2000 was in cash. The stolen goods should be debited to the Theft Account, and the cash should be credited to the Cash Account. The Purchases Account should be credited by the value of stolen goods to adjust the inventory.
3. Sale of Goods with Sales Tax
Debit: Cash Account - Rs. 54,000
Credit: Sales Account - Rs. 50,000
Credit: Sales Tax Payable Account - Rs. 4,000
Explanation: Goods are sold for cash for Rs. 50,000, and an 8% sales tax is collected on it, which amounts to Rs. 4000. The Cash Account should be debited for the total amount received, and the Sales Account should be credited for the value of the goods sold. The Sales Tax Payable Account should be credited for the amount of sales tax collected.
In conclusion, the journal entries for the given business transactions have been adequately explained and recorded. These entries are essential for maintaining accurate financial records and ensuring that the accounting equation remains balanced.
1. Supplied goods costing Rupees 6000 to Rajesh issued invoice at 10% ...
2000