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A machinery of rupees 4000 was sold for rupees 5200. Depreciation to date was rupees 400 and commission rupees 320 paid to selling agent, and wages paid to worker for remaining the machine was rupees 50. pass the necessary journal entry.?
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A machinery of rupees 4000 was sold for rupees 5200. Depreciation to d...
Cash Dr.4830
Prov for Dep Dr. 400
Commission Dr. 320
Wages Dr. 50
To Machinery 4000
To Profit & Loss 1600
This question is part of UPSC exam. View all Commerce courses
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A machinery of rupees 4000 was sold for rupees 5200. Depreciation to d...
Journal Entry for Sale of Machinery
To record the sale of machinery and related expenses, the following journal entry needs to be made:
Date: [Date of sale]
Journal Entry:
Debit Cash/Bank Account [Amount received]
Debit Accumulated Depreciation [Depreciation]
Debit Selling Agent Commission [Commission]
Debit Worker Wages [Wages]
Credit Machinery Account [Cost of machinery]
Explanation:
1. Cash/Bank Account: This is debited to record the amount received from the sale of machinery. In this case, the machinery was sold for rupees 5200.
2. Accumulated Depreciation: This account represents the total depreciation charged on the machinery over its useful life. Since the machinery was sold, the accumulated depreciation needs to be adjusted. The depreciation to date is given as rupees 400, which is debited to reduce the value of the accumulated depreciation.
3. Selling Agent Commission: This account is debited to record the commission paid to the selling agent for their services in facilitating the sale. The amount of commission paid is given as rupees 320.
4. Worker Wages: This account is debited to record the wages paid to the worker for maintaining the machine until its sale. The amount of wages paid is given as rupees 50.
5. Machinery Account: This account represents the original cost of the machinery. It is credited to reduce the value of the machinery as it is being sold. The cost of the machinery is given as rupees 4000.
By making the above journal entry, the sale of machinery, along with the related expenses, is properly recorded in the accounting system. This will ensure accurate financial reporting and reflect the impact of the sale on the company's financial statements.
To record the sale of machinery and related expenses, the following journal entry needs to be made:
Date: [Date of sale]
Journal Entry:
Debit Cash/Bank Account [Amount received]
Debit Accumulated Depreciation [Depreciation]
Debit Selling Agent Commission [Commission]
Debit Worker Wages [Wages]
Credit Machinery Account [Cost of machinery]
Explanation:
1. Cash/Bank Account: This is debited to record the amount received from the sale of machinery. In this case, the machinery was sold for rupees 5200.
2. Accumulated Depreciation: This account represents the total depreciation charged on the machinery over its useful life. Since the machinery was sold, the accumulated depreciation needs to be adjusted. The depreciation to date is given as rupees 400, which is debited to reduce the value of the accumulated depreciation.
3. Selling Agent Commission: This account is debited to record the commission paid to the selling agent for their services in facilitating the sale. The amount of commission paid is given as rupees 320.
4. Worker Wages: This account is debited to record the wages paid to the worker for maintaining the machine until its sale. The amount of wages paid is given as rupees 50.
5. Machinery Account: This account represents the original cost of the machinery. It is credited to reduce the value of the machinery as it is being sold. The cost of the machinery is given as rupees 4000.
By making the above journal entry, the sale of machinery, along with the related expenses, is properly recorded in the accounting system. This will ensure accurate financial reporting and reflect the impact of the sale on the company's financial statements.
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A machinery of rupees 4000 was sold for rupees 5200. Depreciation to date was rupees 400 and commission rupees 320 paid to selling agent, and wages paid to worker for remaining the machine was rupees 50. pass the necessary journal entry.?
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A machinery of rupees 4000 was sold for rupees 5200. Depreciation to date was rupees 400 and commission rupees 320 paid to selling agent, and wages paid to worker for remaining the machine was rupees 50. pass the necessary journal entry.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A machinery of rupees 4000 was sold for rupees 5200. Depreciation to date was rupees 400 and commission rupees 320 paid to selling agent, and wages paid to worker for remaining the machine was rupees 50. pass the necessary journal entry.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machinery of rupees 4000 was sold for rupees 5200. Depreciation to date was rupees 400 and commission rupees 320 paid to selling agent, and wages paid to worker for remaining the machine was rupees 50. pass the necessary journal entry.?.
A machinery of rupees 4000 was sold for rupees 5200. Depreciation to date was rupees 400 and commission rupees 320 paid to selling agent, and wages paid to worker for remaining the machine was rupees 50. pass the necessary journal entry.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A machinery of rupees 4000 was sold for rupees 5200. Depreciation to date was rupees 400 and commission rupees 320 paid to selling agent, and wages paid to worker for remaining the machine was rupees 50. pass the necessary journal entry.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machinery of rupees 4000 was sold for rupees 5200. Depreciation to date was rupees 400 and commission rupees 320 paid to selling agent, and wages paid to worker for remaining the machine was rupees 50. pass the necessary journal entry.?.
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