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Inter-departmental transfers of goods are treated by recording them as internal transactions between departments within the same organization. When goods are transferred, the sending department typically credits its inventory account, while the receiving department debits its inventory account at the cost price. This ensures that each department's financial records reflect the movement of goods accurately without impacting the overall financial position of the organization. Any profit or loss on the transfer may need to be eliminated in consolidated financial statements to avoid double counting.
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What is the journal entry for goods return?
If sales goods returned: [Debit] Sales account xxxx [Credit] Sales Return account xxxx if purchase goods returned: [Debit] Purchase return xxxx [Credit] Purchases account xxxx
When a seller records a return of goods the account that is credited is?
When a seller records a return of goods, the account that is credited is typically "Sales Returns and Allowances." This account is a contra-revenue account that reduces the total sales revenue reported on the income statement. Additionally, the inventory account may be debited to reflect the return of goods to stock.
Is cost of goods sold a nominal account?
yes it is. it is an income statement account
What is the name of the controlling account for the finished goods ledger?
Work in progress account
What is the journal entry for Goods taken away by the proprietor for his personal use Rs 2000?
debit drawings account 2000credit goods account 2000
What is the journal entry for purchasing goods on cash does goods account exist?
Debit goods purchasedCredit cashYes goods account is called "Inventory" account
In accounting what is the rule for entering in the ledger?
Debit an account that has received goods or money; and credit account that has given goods
What is the journal entry for goods return?
If sales goods returned: [Debit] Sales account xxxx [Credit] Sales Return account xxxx if purchase goods returned: [Debit] Purchase return xxxx [Credit] Purchases account xxxx
What is the goods account?
The goods account is a component of a country's balance of payments that records the export and import of tangible goods, such as machinery, vehicles, and electronics. It helps to track the value of goods flowing into and out of a country, providing insights into its trade balance.
When a seller records a return of goods the account that is credited is?
When a seller records a return of goods, the account that is credited is typically "Sales Returns and Allowances." This account is a contra-revenue account that reduces the total sales revenue reported on the income statement. Additionally, the inventory account may be debited to reflect the return of goods to stock.
To purchase goods and services on account is to create what?
The correct answer is - an A/P liability.Accounts payable are liabilities (obligations) created by buying goods or services on account.
Is cost of goods sold a nominal account?
yes it is. it is an income statement account
What is the name of the controlling account for the finished goods ledger?
Work in progress account
When is breach of condition treated as a breach of warranty?
when it is voluntary waiver of his right by buyer and acceptance of goods by buyer then breach of condition is to be treated as breach of warranty.sec.42 deals with acceptance of goods when he intimates to the seller regarding acceptance or retain the goods without rejectingthe goods.in these condition breach of condition is to be treated as breach of warranty.
What is the journal entry for Goods taken away by the proprietor for his personal use Rs 2000?
debit drawings account 2000credit goods account 2000
How is carriage inwards treated in the final accounts?
Carriage inwards, which refers to the transportation costs incurred when goods are purchased and delivered to a business, is treated as an expense in the final accounts. It is typically added to the cost of goods sold in the trading account, thereby increasing the total cost of inventory. This treatment ensures that the true cost of acquiring inventory is reflected in the financial statements, ultimately impacting the gross profit calculation. In the profit and loss account, it is not shown as a separate line item but is included in the overall cost of sales.
Which one is the correct Journal entry when promoters with draw goods?
When promoters withdraw goods from the business for personal use, the correct journal entry would be to debit the Drawings account and credit the Inventory or Goods account. This reflects the decrease in the company’s assets (inventory) and acknowledges the withdrawal by the promoter as a personal drawing. For example: Debit: Drawings Account Credit: Inventory/Goods Account This entry properly accounts for the transfer of goods from the business to the promoter's personal use.
