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Purchased goods for Rs 50000 from Govind and sold it to Manohar for Rs 65000 (pass journal entry)?
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Purchased goods for Rs 50000 from Govind and sold it to Manohar for Rs...
Journal Entry for Purchase and Sale of Goods
When a business purchases goods from a supplier and sells them to a customer, a journal entry needs to be made to record the transaction. In this case, the business purchased goods from Govind for Rs 50,000 and sold them to Manohar for Rs 65,000. The journal entry for this transaction would be as follows:
Explanation of the Journal Entry
The journal entry records the purchase of goods from Govind and the sale of goods to Manohar. The following points explain the journal entry in detail:
In conclusion, the journal entry for the purchase and sale of goods involves debiting the purchase and sales accounts and crediting the supplier and customer accounts respectively. This entry helps in keeping track of the inventory and the financial position of the business.
When a business purchases goods from a supplier and sells them to a customer, a journal entry needs to be made to record the transaction. In this case, the business purchased goods from Govind for Rs 50,000 and sold them to Manohar for Rs 65,000. The journal entry for this transaction would be as follows:
Date: [Date of transaction]
Account Debit Credit
Purchase Account [Dr.] 50,000
To Govind Account [Cr.] 50,000
Sales Account [Dr.] 65,000
To Manohar Account [Cr.] 65,000
Explanation of the Journal Entry
The journal entry records the purchase of goods from Govind and the sale of goods to Manohar. The following points explain the journal entry in detail:
- Purchase Account [Dr.] 50,000: This account is debited with Rs 50,000 to record the purchase of goods from Govind. The purchase account is an expense account and is used to record the cost of goods purchased for resale.
- To Govind Account [Cr.] 50,000: This account is credited with Rs 50,000 to show that Govind is the supplier of the goods and the business owes him money for the purchase. Govind's account is a liability account and reflects the amount owed to the supplier.
- Sales Account [Dr.] 65,000: This account is debited with Rs 65,000 to record the sale of goods to Manohar. The sales account is a revenue account and records the income earned from the sale of goods.
- To Manohar Account [Cr.] 65,000: This account is credited with Rs 65,000 to show that Manohar is the customer who purchased the goods from the business and owes them money for the purchase. Manohar's account is an asset account and reflects the amount owed by the customer to the business.
In conclusion, the journal entry for the purchase and sale of goods involves debiting the purchase and sales accounts and crediting the supplier and customer accounts respectively. This entry helps in keeping track of the inventory and the financial position of the business.
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Purchased goods for Rs 50000 from Govind and sold it to Manohar for Rs 65000 (pass journal entry)?
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Purchased goods for Rs 50000 from Govind and sold it to Manohar for Rs 65000 (pass journal entry)? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Purchased goods for Rs 50000 from Govind and sold it to Manohar for Rs 65000 (pass journal entry)? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Purchased goods for Rs 50000 from Govind and sold it to Manohar for Rs 65000 (pass journal entry)?.
Purchased goods for Rs 50000 from Govind and sold it to Manohar for Rs 65000 (pass journal entry)? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Purchased goods for Rs 50000 from Govind and sold it to Manohar for Rs 65000 (pass journal entry)? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Purchased goods for Rs 50000 from Govind and sold it to Manohar for Rs 65000 (pass journal entry)?.
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