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Can you explain the answer of this question below:
Goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000. Market price of goods is Rs. 6,000. Journal entry will be
- A:Wages A/c Dr. Rs. 6,000To Sales A/c Rs. 6,000
- B:Wages A/c Dr. Rs. 5,000To Purchases A/c Rs. 5,000
- C:Wages A/c Dr. Rs. 5,000To Cash A/c Rs. 5,000
- D:None of the above
The answer is b.
Most Upvoted Answer
Can you explain the answer of this question below:Goods costing Rs. 5,...
In the above transaction, Goods given can not be treated as sale, & There is also no cash inflow....... There is jst a transfer from purchases A/c to wages A/c...........So, The answer is 'B'
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Can you explain the answer of this question below:Goods costing Rs. 5,...
Explanation:
The correct journal entry for the given transaction is:
Wages A/c Dr. Rs. 5,000
To Purchases A/c Rs. 5,000
Explanation:
In this transaction, goods worth Rs. 5,000 have been given to a worker towards wages. The market price of these goods is Rs. 6,000. The journal entry should reflect the cost of these goods given to the worker.
Reason for the Journal Entry:
The journal entry debits the Wages Account and credits the Purchases Account. This is because when goods are given to a worker towards wages, it is considered as a purchase of goods for the business.
- The Wages Account is debited because it represents an expense for the business. By debiting the Wages Account, we are recording the cost of the goods given to the worker towards wages.
- The Purchases Account is credited because it represents an increase in the cost of goods purchased for the business. By crediting the Purchases Account, we are recording the cost of the goods given to the worker.
Example:
Let's assume that the goods given to the worker have a cost price of Rs. 5,000 and a market price of Rs. 6,000. The journal entry for this transaction would be:
Wages A/c Dr. Rs. 5,000
To Purchases A/c Rs. 5,000
This journal entry reflects the cost of the goods given to the worker towards wages and properly records the transaction in the accounting records.
Conclusion:
The correct journal entry for goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000, with a market price of goods being Rs. 6,000, is:
Wages A/c Dr. Rs. 5,000
To Purchases A/c Rs. 5,000
The correct journal entry for the given transaction is:
Wages A/c Dr. Rs. 5,000
To Purchases A/c Rs. 5,000
Explanation:
In this transaction, goods worth Rs. 5,000 have been given to a worker towards wages. The market price of these goods is Rs. 6,000. The journal entry should reflect the cost of these goods given to the worker.
Reason for the Journal Entry:
The journal entry debits the Wages Account and credits the Purchases Account. This is because when goods are given to a worker towards wages, it is considered as a purchase of goods for the business.
- The Wages Account is debited because it represents an expense for the business. By debiting the Wages Account, we are recording the cost of the goods given to the worker towards wages.
- The Purchases Account is credited because it represents an increase in the cost of goods purchased for the business. By crediting the Purchases Account, we are recording the cost of the goods given to the worker.
Example:
Let's assume that the goods given to the worker have a cost price of Rs. 5,000 and a market price of Rs. 6,000. The journal entry for this transaction would be:
Wages A/c Dr. Rs. 5,000
To Purchases A/c Rs. 5,000
This journal entry reflects the cost of the goods given to the worker towards wages and properly records the transaction in the accounting records.
Conclusion:
The correct journal entry for goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000, with a market price of goods being Rs. 6,000, is:
Wages A/c Dr. Rs. 5,000
To Purchases A/c Rs. 5,000
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Can you explain the answer of this question below:Goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000. Market price of goods is Rs. 6,000. Journal entry will beA:Wages A/c Dr. Rs. 6,000To Sales A/c Rs. 6,000B:Wages A/c Dr. Rs. 5,000To Purchases A/c Rs. 5,000C:Wages A/c Dr. Rs. 5,000To Cash A/c Rs. 5,000D:None of the aboveThe answer is b.
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Can you explain the answer of this question below:Goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000. Market price of goods is Rs. 6,000. Journal entry will beA:Wages A/c Dr. Rs. 6,000To Sales A/c Rs. 6,000B:Wages A/c Dr. Rs. 5,000To Purchases A/c Rs. 5,000C:Wages A/c Dr. Rs. 5,000To Cash A/c Rs. 5,000D:None of the aboveThe answer is b. for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Can you explain the answer of this question below:Goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000. Market price of goods is Rs. 6,000. Journal entry will beA:Wages A/c Dr. Rs. 6,000To Sales A/c Rs. 6,000B:Wages A/c Dr. Rs. 5,000To Purchases A/c Rs. 5,000C:Wages A/c Dr. Rs. 5,000To Cash A/c Rs. 5,000D:None of the aboveThe answer is b. covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:Goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000. Market price of goods is Rs. 6,000. Journal entry will beA:Wages A/c Dr. Rs. 6,000To Sales A/c Rs. 6,000B:Wages A/c Dr. Rs. 5,000To Purchases A/c Rs. 5,000C:Wages A/c Dr. Rs. 5,000To Cash A/c Rs. 5,000D:None of the aboveThe answer is b..
Can you explain the answer of this question below:Goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000. Market price of goods is Rs. 6,000. Journal entry will beA:Wages A/c Dr. Rs. 6,000To Sales A/c Rs. 6,000B:Wages A/c Dr. Rs. 5,000To Purchases A/c Rs. 5,000C:Wages A/c Dr. Rs. 5,000To Cash A/c Rs. 5,000D:None of the aboveThe answer is b. for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Can you explain the answer of this question below:Goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000. Market price of goods is Rs. 6,000. Journal entry will beA:Wages A/c Dr. Rs. 6,000To Sales A/c Rs. 6,000B:Wages A/c Dr. Rs. 5,000To Purchases A/c Rs. 5,000C:Wages A/c Dr. Rs. 5,000To Cash A/c Rs. 5,000D:None of the aboveThe answer is b. covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:Goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000. Market price of goods is Rs. 6,000. Journal entry will beA:Wages A/c Dr. Rs. 6,000To Sales A/c Rs. 6,000B:Wages A/c Dr. Rs. 5,000To Purchases A/c Rs. 5,000C:Wages A/c Dr. Rs. 5,000To Cash A/c Rs. 5,000D:None of the aboveThe answer is b..
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Here you can find the meaning of Can you explain the answer of this question below:Goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000. Market price of goods is Rs. 6,000. Journal entry will beA:Wages A/c Dr. Rs. 6,000To Sales A/c Rs. 6,000B:Wages A/c Dr. Rs. 5,000To Purchases A/c Rs. 5,000C:Wages A/c Dr. Rs. 5,000To Cash A/c Rs. 5,000D:None of the aboveThe answer is b. defined & explained in the simplest way possible. Besides giving the explanation of
Can you explain the answer of this question below:Goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000. Market price of goods is Rs. 6,000. Journal entry will beA:Wages A/c Dr. Rs. 6,000To Sales A/c Rs. 6,000B:Wages A/c Dr. Rs. 5,000To Purchases A/c Rs. 5,000C:Wages A/c Dr. Rs. 5,000To Cash A/c Rs. 5,000D:None of the aboveThe answer is b., a detailed solution for Can you explain the answer of this question below:Goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000. Market price of goods is Rs. 6,000. Journal entry will beA:Wages A/c Dr. Rs. 6,000To Sales A/c Rs. 6,000B:Wages A/c Dr. Rs. 5,000To Purchases A/c Rs. 5,000C:Wages A/c Dr. Rs. 5,000To Cash A/c Rs. 5,000D:None of the aboveThe answer is b. has been provided alongside types of Can you explain the answer of this question below:Goods costing Rs. 5,000 given to a worker towards wages Rs. 5,000. Market price of goods is Rs. 6,000. Journal entry will beA:Wages A/c Dr. Rs. 6,000To Sales A/c Rs. 6,000B:Wages A/c Dr. Rs. 5,000To Purchases A/c Rs. 5,000C:Wages A/c Dr. Rs. 5,000To Cash A/c Rs. 5,000D:None of the aboveThe answer is b. theory, EduRev gives you an
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