Question

# (Transfer Entries). Give the Journal entries for the following: (i) Gross Profit of ₹ 32,000 from Trading Account to Profit and Loss Account. (ii) Net Profit of ₹ 14,500 to Capital Account of Sri Sankar Saha.  (iii) Sri Sankar Saha draws ₹ 10,000 from his Capital Account. (iv) Purchases Return of ₹ 7,000 plus IGST @ 12%. (v) Sales Return of ​₹ 6,000 plus CGST and SGST @ 6% each.

Solution

## Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) (i) Trading A/c Dr.   32,000       To Profit & Loss A/c       32,000   (Transfer of gross profit to Profit &Loss A/c)                     (ii) Profit & Loss A/c Dr.   14,500       To Sri Sankar Saha’s Capital A/c       14,500   (Transfer of net profit to Capital A/c)                     (iii) Sri Sankar Saha’s Capital A/c Dr.   10,000       To Drawings A/c       10,000   (Withdrawals from capital)                     (iv) Cash A/c Dr.   7,840       To Purchases Return A/c       7,000     To Input IGST A/c       840   (Goods returned by us)                     (v) Sales Return A/c Dr.   6,000     Output CGST A/c Dr.   360     Output SGST A/c Dr.   360       To Cash A/c       6,720   (Goods returned by customers)         AccountancyT.S. Grewal (2019)All

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