Interested to Buy Any Domain ? << Click Here >> for more details...
purchased a laptop for Rs.50000 and received one calculator
costing Rs.1000 for free. Both laptop and calculator
(stationery in nature) are meant for office use.What will
be the journal entry in the books of both the parties?
- 21 Answers
- 39126 Views
- I also Faced
- E-Mail Answers
Answer Posted / h.r. sreepada bhagi
In the books of the purchaser the transaction can be
accounted in different ways as per the policy of the
purchasing company/firm. Various options are:-
1. Treat the Laptop as asset & Calculator as Stationery &
recognise the value of the free item in the books - Debit
Asset (Laptop) with Rs. 50000/-, Stationery A/c with Rs.
1000/-, Credit the supplier with Rs. 50000/- & Discount A/c
with Rs. 1000/-
2. Treat the Laptop as asset & Calculator as Stationery -
Debit Asset (Laptop) with Rs. 49000/-, Stationery A/c with
Rs. 1000/-, Credit the supplier with Rs. 50000/-.
3. Treat the Laptop & Calculator as Assets - Debit Asset
(Laptop) with Rs. 50000/-, Asset (Calculator) with Rs.
1000/-, Credit the supplier with Rs. 50000/- & Discount A/c
with Rs. 1000/-. In this case calculator can be depreciated
100%.
4. Treat the Laptop & Calculator as Assets - Debit Asset
(Laptop) with Rs. 49000/-, Asset (Calculator) with Rs.
1000/-, Credit the supplier with Rs. 50000/-. In this case
calculator can be depreciated 100%.
5. Treat the Laptop as an Asset & ignore calculator in the
books - Debit Asset (Laptop) with Rs. 50000/- & Credit the
supplier with Rs. 50000/-.
6. When payment is made debit the supplier and credit Bank
or Cash A/c as the case may be.
Any of the above accounting treatment can be in line with
the accounting policy of the company and serve only as
guidelines. While accounting this kind of transaction
Accounting Concept of materiality should be kept in mind.
| Is This Answer Correct ? | 1 Yes | 1 No |
Post New Answer View All Answers
Assuming that a firm pays tax at a 50 per cent rate, compute the after tax cost of capital in the following cases: I. A 8.5 % preference share sold at par. II. A perpetual bond sold at par, coupon rate of interest being 7 per cent III. A ten year, 8 percent, Rs.1000 par bond sold at Rs.950 less 4 percent underwriting commission.
What does a demo/presentation need to be effective?
i got a case study in which theie is a chemical company group which has 12 companies in all, few in Europe and few in USA, my question is should i have only 2 COA as per the standard like US GAAP and IFRS or should i have COA based on country location.
What is the difference between perpetual & periodic inventory system?
How to post salary advance transfer from one branch to another branch ?
entry for cash received from debtors
what is loan operations and what are the complete process form from making customer to closure of loan
What is the basic accounting equation?
Do you know any other accounting application?
what is groups and and ledgers in tally can you give why we need to prepare them
What is depreciation and how many types are there. Please give details?
cost of lease=20,000.refundable deposits 2000 (after 4 years).annuity value for 4 years @5% is .2820.find the net charge to p&l a/c
how many types excise audits and when they are applicable to firm
Explain what is gaap?
"Trial Balance is not a comclusive proof of the accuracy of the books of accounts." Explain this statement and describe the errors which are not disclosed inspite of the agreement of trial balance.
