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Pass journal entry for the following : (1) Received order for Rs 20,000 from kumar for supply of goods and received Rs 12,000 as an advance together with the order. (2) Goods worth Rs 20,000 supplied to kumar against the order and advance previously received from him.
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Pass journal entry for the following : (1) Received order for Rs 20,00...
Journal Entry for Received Order and Advance from Kumar
Date: [Date of transaction]
Particulars | L.F. | Debit | Credit
--- | --- | --- | ---
Bank Account | | | 12,000
Kumar Account | | 12,000 |
(Received advance from Kumar against order)
Journal Entry for Goods Supplied to Kumar
Date: [Date of transaction]
Particulars | L.F. | Debit | Credit
--- | --- | --- | ---
Kumar Account | | 20,000 |
Sales Account | | 20,000 |
(Supplied goods worth Rs 20,000 to Kumar against the order and advance previously received from him)
Explanation
When a business receives an order and an advance payment from a customer, it is recorded in the books of accounts as a liability. The advance payment received from the customer is recorded as a credit to the customer's account and a debit to the bank account.
When the goods are supplied against the order and the advance payment, it is recorded in the books of accounts as a credit to the customer's account and a debit to the sales account. This represents the revenue earned by the business from the sale of goods.
In the above example, Kumar placed an order for goods worth Rs 20,000 and made an advance payment of Rs 12,000. The advance payment received from Kumar is recorded as a credit to the Kumar account and a debit to the bank account.
When the goods worth Rs 20,000 were supplied to Kumar against the order and the advance payment, it is recorded as a credit to the Kumar account and a debit to the sales account. This entry represents the revenue earned by the business from the sale of goods.
In conclusion, recording transactions accurately in the books of accounts is essential for maintaining proper financial records and ensuring the smooth functioning of the business.
Date: [Date of transaction]
Particulars | L.F. | Debit | Credit
--- | --- | --- | ---
Bank Account | | | 12,000
Kumar Account | | 12,000 |
(Received advance from Kumar against order)
Journal Entry for Goods Supplied to Kumar
Date: [Date of transaction]
Particulars | L.F. | Debit | Credit
--- | --- | --- | ---
Kumar Account | | 20,000 |
Sales Account | | 20,000 |
(Supplied goods worth Rs 20,000 to Kumar against the order and advance previously received from him)
Explanation
When a business receives an order and an advance payment from a customer, it is recorded in the books of accounts as a liability. The advance payment received from the customer is recorded as a credit to the customer's account and a debit to the bank account.
When the goods are supplied against the order and the advance payment, it is recorded in the books of accounts as a credit to the customer's account and a debit to the sales account. This represents the revenue earned by the business from the sale of goods.
In the above example, Kumar placed an order for goods worth Rs 20,000 and made an advance payment of Rs 12,000. The advance payment received from Kumar is recorded as a credit to the Kumar account and a debit to the bank account.
When the goods worth Rs 20,000 were supplied to Kumar against the order and the advance payment, it is recorded as a credit to the Kumar account and a debit to the sales account. This entry represents the revenue earned by the business from the sale of goods.
In conclusion, recording transactions accurately in the books of accounts is essential for maintaining proper financial records and ensuring the smooth functioning of the business.
Community Answer
Pass journal entry for the following : (1) Received order for Rs 20,00...
1. cash A/C Dr. 12,000
To advance from kumar 12,000
( Being cash received in advance for an order )
2. kumar Dr. 20,000
To Sales A/C 20,000
( Being goods sold to kumar )
To advance from kumar 12,000
( Being cash received in advance for an order )
2. kumar Dr. 20,000
To Sales A/C 20,000
( Being goods sold to kumar )
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Pass journal entry for the following : (1) Received order for Rs 20,000 from kumar for supply of goods and received Rs 12,000 as an advance together with the order. (2) Goods worth Rs 20,000 supplied to kumar against the order and advance previously received from him.
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Pass journal entry for the following : (1) Received order for Rs 20,000 from kumar for supply of goods and received Rs 12,000 as an advance together with the order. (2) Goods worth Rs 20,000 supplied to kumar against the order and advance previously received from him. 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 Pass journal entry for the following : (1) Received order for Rs 20,000 from kumar for supply of goods and received Rs 12,000 as an advance together with the order. (2) Goods worth Rs 20,000 supplied to kumar against the order and advance previously received from him. covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pass journal entry for the following : (1) Received order for Rs 20,000 from kumar for supply of goods and received Rs 12,000 as an advance together with the order. (2) Goods worth Rs 20,000 supplied to kumar against the order and advance previously received from him..
Pass journal entry for the following : (1) Received order for Rs 20,000 from kumar for supply of goods and received Rs 12,000 as an advance together with the order. (2) Goods worth Rs 20,000 supplied to kumar against the order and advance previously received from him. 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 Pass journal entry for the following : (1) Received order for Rs 20,000 from kumar for supply of goods and received Rs 12,000 as an advance together with the order. (2) Goods worth Rs 20,000 supplied to kumar against the order and advance previously received from him. covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pass journal entry for the following : (1) Received order for Rs 20,000 from kumar for supply of goods and received Rs 12,000 as an advance together with the order. (2) Goods worth Rs 20,000 supplied to kumar against the order and advance previously received from him..
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