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Employees had taken inventory worth ₹ 1,00,000 (Cost price ₹ 75,000) on the
eve of Deepawali and the same was deducted from their salaries in the
subsequent month
?
eve of Deepawali and the same was deducted from their salaries in the
subsequent month
?
Most Upvoted Answer
Employees had taken inventory worth ₹ 1,00,000 (Cost price ₹ 75,000) o...
Explanation of the Transaction:
The given transaction involves the deduction of inventory worth ₹ 1,00,000 from the employee's salaries in the subsequent month. This deduction was made as the employees had taken inventory worth ₹ 75,000 at cost price on the eve of Deepawali.
Reason for the Deduction:
The deduction was made to ensure that the employees are held accountable for the inventory they had taken. As the inventory was taken by the employees, it was their responsibility to pay for it. Therefore, the company deducted the cost of the inventory from their salaries in the subsequent month.
Impact on Financial Statements:
The deduction of inventory from the employee's salaries will have an impact on the financial statements of the company. The following are the impacts:
Conclusion:
To conclude, the deduction of inventory from the employee's salaries is a common practice to ensure that employees are held accountable for the inventory they take. This transaction will have an impact on the financial statements of the company, and it is essential to record it accurately to reflect the true financial position of the company.
The given transaction involves the deduction of inventory worth ₹ 1,00,000 from the employee's salaries in the subsequent month. This deduction was made as the employees had taken inventory worth ₹ 75,000 at cost price on the eve of Deepawali.
Reason for the Deduction:
The deduction was made to ensure that the employees are held accountable for the inventory they had taken. As the inventory was taken by the employees, it was their responsibility to pay for it. Therefore, the company deducted the cost of the inventory from their salaries in the subsequent month.
Impact on Financial Statements:
The deduction of inventory from the employee's salaries will have an impact on the financial statements of the company. The following are the impacts:
- Income Statement: The deduction will reduce the salaries expense of the company, which will increase its net income for the period.
- Balance Sheet: The deduction will reduce the cash balance of the company, as the employees will pay for the inventory through their salaries. The inventory balance will also decrease, as the inventory was taken by the employees and not purchased by the company.
Conclusion:
To conclude, the deduction of inventory from the employee's salaries is a common practice to ensure that employees are held accountable for the inventory they take. This transaction will have an impact on the financial statements of the company, and it is essential to record it accurately to reflect the true financial position of the company.
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Employees had taken inventory worth ₹ 1,00,000 (Cost price ₹ 75,000) on theeve of Deepawali and the same was deducted from their salaries in thesubsequent month?
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Employees had taken inventory worth ₹ 1,00,000 (Cost price ₹ 75,000) on theeve of Deepawali and the same was deducted from their salaries in thesubsequent month? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Employees had taken inventory worth ₹ 1,00,000 (Cost price ₹ 75,000) on theeve of Deepawali and the same was deducted from their salaries in thesubsequent month? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Employees had taken inventory worth ₹ 1,00,000 (Cost price ₹ 75,000) on theeve of Deepawali and the same was deducted from their salaries in thesubsequent month?.
Employees had taken inventory worth ₹ 1,00,000 (Cost price ₹ 75,000) on theeve of Deepawali and the same was deducted from their salaries in thesubsequent month? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Employees had taken inventory worth ₹ 1,00,000 (Cost price ₹ 75,000) on theeve of Deepawali and the same was deducted from their salaries in thesubsequent month? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Employees had taken inventory worth ₹ 1,00,000 (Cost price ₹ 75,000) on theeve of Deepawali and the same was deducted from their salaries in thesubsequent month?.
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