Journal proper refer to the special types of journals which occur occasionally.
These are also known by subsidiary journals.
There are certain types of transactions which are not recorded in other subsidiary books but for the systematic recording.
Systematic recording of all such transactions are made under journal proper by following rules of double entry system of book-keeping.
Some examples of such transactions can be given as below:
Opening entries
Closing entries
Transfer entries
Adjustment entries (outstanding, prepaid, accrued, advance income)
Rectification entries
No special journal (free sample, loss by fire etc)
Rare transaction
A company can distribute some goods as free samples to the customers to promotion of business.
Free sample of products is distributed for getting feedback about taste and quality from the customers.
It provides information to the management of company to improve quality of product.
Sometimes organization can give goods as charity or donation for religious purpose, and social help (help at the time of floods, tsunami, earthquake etc).
Goods given as free sample, charity or donation is deducted from purchase of goods because it decreases purchase goods.
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 10
ABC Manufacturing Company purchased goods worth $/₹/Rs 800,000 for the year. Out of them, product worth Rs 10,000 distributed as free sample during the year.
Required: Adjustment entry and ledgers
Journal Entries
Date |
Particulars |
|
LF |
Amount |
Amount |
|
Free sample (advertisement) account To Purchase account (Being- goods distributed as free sample)
|
Dr |
|
10,000
|
10,000
|
Trading Account
Particulars |
|
Amount |
Particulars |
Amount |
To Purchase Less: Free sample
|
800,000 (10,000) |
790,000
|
|
|
Profit and Loss Account
Particulars |
|
Amount |
Particulars |
Amount |
To Free sample (advt)
|
|
10,000 |
|
|
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ACCOUNTING EQUATION http://tiny.cc/c89jkz
BASIC JOURNAL ENTRIES IN NEPALI http://tiny.cc/uaakkz
BASIC JOURNAL ENTRIES http://tiny.cc/8aakkz
JOURNAL ENTRY AND LEDGER http://tiny.cc/caakkz
LEDGER http://tiny.cc/haakkz
SUBSIDIARY BOOK http://tiny.cc/399jkz
CASH BOOK http://tiny.cc/889jkz
TRIAL BALANCE & ADJUSTED TRIAL BALANCE http://tiny.cc/c59jkz
BANK RECONCILIATION STATEMENT (BRS) http://tiny.cc/q59jkz
DEPRECIATION http://tiny.cc/ugakkz
FINAL ACCOUNT: CLASS 11 http://tiny.cc/y89jkz
ADJUSTMENT IN FINAL ACCOUNT http://tiny.cc/keakkz
CAPITAL AND REVENUE http://tiny.cc/peakkz
SINGLE ENTRY SYSTEM http://tiny.cc/n19jkz
NON-PROFIT ORGANIZATION (NON-TRADING CONCERN http://tiny.cc/j09jkz
GOVERNMENT ACCOUNTING http://tiny.cc/hcakkz
GOSWARA VOUCHER (JOURNAL VOUCHER) http://tiny.cc/hcakkz
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PROBLEMS AND ANSWERS |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
Basic Problem: 10 GOODS DISTRIBUTED
SK Traders has following extracted transactions:
(a) Goods worth Rs 5,000 are given as charity.
(b) Goods distributed as free sample Rs 10,000.
(c) Goods worth Rs 5,000 given to construction of temple.
Required: Journal entries
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