Interested to Buy Any Domain ? << Click Here >> for more details...
My Question regarding owners drawings.
case1; If owner paid some expenses from his own pocket and
later that amount added to his salary then what adjustment
entries will needed.
- 5 Answers
- 6740 Views
- I also Faced
- E-Mail Answers
Answer Posted / saravanank
Assume owner paid £500 towards business expense, but the company paid salary (£1500)alongwith paid privately amount, right??
1.
Business Expense 500
To Drawings 500
2.
Drawings 1500 (if he is Proprietor)
To Cash/Bank 1500
3.
Director Salaries 1500 (If he is director)
To Cash/Bank 1500
4. This is adjustment entry
DCA/Drawings 500 (If he is director)
To Director salaries 500
5. If he is proprietor and withdraw amount for his works, he is not entitled to claim the same as salary and it is entirely personal and treated as personal drawings. Right???
| Is This Answer Correct ? | 0 Yes | 1 No |
Post New Answer View All Answers
I am maintaing books of accounts a Software Co. Kindly advise me Account Head of these exps. (Software Exps.,Internet Exps., Video Exps.,Server Maint.Exps.,& SMS Exps.,) Thanks
What is SOX
From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.
what is GL Balance
Placed an order with Mani for supply of goods worth Rs.5000/-. state whether the the following transcation is business transcation or non business transcation? with reson or explaination?
Indian Iran Gas pipeline
What does my credit score mean?
how history is helpful for banking?
You configured new assets accounting for your company code with three depreciation areas that post in real time. When posting an external acquisition. How many documents are created?( any 1 answer) 2 3 4 6
Dear all, Could you suggest me that if got a job in a/cs in Big org but on payroll of Outsourcing company,What should to prefer the company payroll or job the ?
Dear Sir, My qus is my co. purchase a laptop from Abc.co. for rs-37200 on credit Emi basis from hdfc bank. i paid every month 6200rs as a installment. so i want to know how i make a entry in tally 9. and also want to know i creat laptop ledger under fixed assets or office expenses. plz tel me soon.or mail me .
WHAT TYPES OF ESSAYS ARE GIVING IN BANK OF AMERICA? CAN ANY ONE HELP ME
HOW MANY ACCOUNTING STANDARDS ARE PREVAILING IN INDIA AS DECLARED BY ICAI
reason for difference in Balance sheet (Asset side & Liabilites side)
How are fund-raising and publicity and management and administration costs apportioned over funds?
