Company A has purchased goods worth Rs. 25000 from company B and made the cash payment of Rs 5000 and remaining will be payable with in 30 days.
Assume that there is a late payment charge @ 2% on remaining amount as the invoice was received after due date from company B.
Pass the journal entry in the books of company A for all the above transactions.
- 1 Answers
- 2406 Views
- SSPL, I also Faced
- E-Mail Answers
Answer / navin kumar
In the Books of Company A
Purchase A/C Dr 25000
To Cash 5000
To B Company 20000
Profit and Loss A/C Dr 400
To late payment Charge 400
| Is This Answer Correct ? | 3 Yes | 0 No |
Define the term material facts in accounting?
what is the journal entry for bank reconciliation.
WHERE WE CAN USE VAT 5%,14.5%
0 Answers Airier, Automobile, Chartered Accountant, Puzzolana,
journal entry for goods withdrawn for personal use
what is the reserve & surplus ?
Differentiate accounting and auditing?
What is creative accounting?
What is the difference between deferred revenue and accrued revenue?
WHAT IS CASH DISCOUNT & TRADE DISCOUNT?
Derivative
A firm had the following Balances on 1 January 1994: (i) Provision for bad and doubtful debts Rs 2,500 (ii) Provision for discounts on debtors Rs 1,200 (iii) Provision for discounts on creditors Rs 1,000 During the year, bad debts amounted to Rs 2,000, discounts allowed were Rs 100 and discounts received were Rs 200. During 1995 bad debts amounting to Rs l,000 were written off while discounts allowed and received were Rs 2,000 and Rs 5,000 respectively. Total debtors on 31 December, 1995 were Rs 48,000 before writing off bad debts, but after allowing discounts. On 31 December, 1995, this amount was Rs 19,000 after writing off the bad debts, but before allowing discounts. Total creditors on these two dates were Rs 20,000 and Rs 25,000 respectively. It is the firm’s policy to maintain a provision of 5% against bad and doubtful debts and 2% for discount on debtors and a provisions of 3% for discount on creditors. Show the accounts relating to provisions on debtors and provisions on creditors for the year 1994 and 1995.
What is the meaning of deferred revenue and expenditure, give examples
2 Answers Bank Of America, Capital IQ,
Audit 
