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Answers (4)

Kajal

Neeraj Chauhan

CMA Final

★ 5

02-Oct-24 21:15

Here are the journal entries for the transactions mentioned: a) Employees had taken inventory worth ₹1,00,000 (Cost price ₹75,000) on the eve of Deepawali, and the same was deducted from their salaries in the subsequent month. - When inventory is taken: Employees Account Dr. ₹1,00,000 To Sales Account ₹1,00,000 (Being goods taken by employees treated as sales) - Cost of goods: Cost of Goods Sold Dr. ₹75,000 To Inventory Account ₹75,000 (Being cost of goods transferred to COGS) - Deduction from salary: Salaries Payable Account Dr. ₹1,00,000 To Employees Account ₹1,00,000 (Being salary adjusted against goods taken by employees) b) Wages paid for erection of machinery ₹18,000 Machinery Account Dr. ₹18,000 To Cash/Bank Account ₹18,000 (Being wages paid for machinery installation capitalized) c) Income tax liability of proprietor ₹17,000 was paid out of petty cash Drawings Account Dr. ₹17,000 To Petty Cash Account ₹17,000 (Being personal income tax paid out of petty cash) d) Purchase of goods from Naveen of the list price of ₹2,00,000. He allowed 10% trade discount, ₹5,000 cash discount was also allowed for quick payment. - Purchase with trade discount: Purchases Account Dr. ₹1,80,000 To Naveen Account ₹1,80,000 (Being goods purchased from Naveen after 10% trade discount) - Payment with cash discount: Naveen Account Dr. ₹1,80,000 To Cash/Bank Account ₹1,75,000 To Discount Received Account ₹5,000 (Being payment made to Naveen with ₹5,000 cash discount)

siddesh N

CA Inter

★ 3K+

02-Oct-24 21:24

siddesh N

Here are the journal entries for the transactions mentioned: a) Employees had taken inventory worth ₹1,00,000 (Cost price ₹75,000) on the eve of Deepawali, and the same was deducted from their salaries in the subsequent month. - When inventory is taken: Employees Account Dr. ₹1,00,000 To Sales Account ₹1,00,000 (Being goods taken by employees treated as sales) - Cost of goods: Cost of Goods Sold Dr. ₹75,000 To Inventory Account ₹75,000 (Being cost of goods transferred to COGS) - Deduction from salary: Salaries Payable Account Dr. ₹1,00,000 To Employees Account ₹1,00,000 (Being salary adjusted against goods taken by employees) b) Wages paid for erection of machinery ₹18,000 Machinery Account Dr. ₹18,000 To Cash/Bank Account ₹18,000 (Being wages paid for machinery installation capitalized) c) Income tax liability of proprietor ₹17,000 was paid out of petty cash Drawings Account Dr. ₹17,000 To Petty Cash Account ₹17,000 (Being personal income tax paid out of petty cash) d) Purchase of goods from Naveen of the list price of ₹2,00,000. He allowed 10% trade discount, ₹5,000 cash discount was also allowed for quick payment. - Purchase with trade discount: Purchases Account Dr. ₹1,80,000 To Naveen Account ₹1,80,000 (Being goods purchased from Naveen after 10% trade discount) - Payment with cash discount: Naveen Account Dr. ₹1,80,000 To Cash/Bank Account ₹1,75,000 To Discount Received Account ₹5,000 (Being payment made to Naveen with ₹5,000 cash discount)

1st entry is wrong and the correct answers are in this picture