Solution of Accounting problems from Pakistan

Query

Dear Prof. Vinod

I have serious doubt in following problems, please reply of my problems :

Question :1.
We used to take advances from Customers for certain products which we don't have stock,when we got enough quantity of requisitions we order those.After receiving the stock we call Customers and they pay full amount and take there items.What will be the Entry and which Head these goes to?
Question 2 :

Loan taken by an Employee?What is the Entry and Head of this transaction?

Question 3:

Closing Entries and their procedures?

Answer


Ans. of 1 Question

Here I am giving solution as advice , there may be differ some rule under the GAAP of your country . But , In India , we follow such solution . So before apply my solution , confirm GAAP of your country relating to inventory management .
When you get advance , it is just like loan received by you before giving goods to your customers .

For this pass the journal entry

Bank or Cash Account Debit Rs .5000 ( For example )

Creditor account ( Give the name of person from whom you get advance money ) Credit Rs 5000

Because , you get cash and creditor is giver so creditor account must be credit .

If you are working on tally 9 then there is no need creating cash ledger because it is automatically created by tally 9
But you need to create Bank account , if you have gotten cheque . for this

Account Info and after this ledger and after this create bank account under bank account
and accept it
after this you can create creditor ledger ( for every person from whom you get money in advance ) under the head of Sundry Creditor or Loan and liabilities .and after this accept each creditor ledger .

You can same create it in Accounting Voucher by pressing short cut command Alt+ C

after this we you will give the goods to your customer , you have to open receipt voucher and then pass the voucher entry

Cash or bank Account Debit 1000 ( balance of sale value )
Creditor account Debit 5000 ( Tally automatically adjust this from your creditor accounts advance with sale value price )

Sale account credit 6000

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Ans. of 2nd Question

If you do not want payroll complex system , you can just pass the following voucher entry in tally 9

Creditor Account ( Name of Employee) Debit xxxxxxx

To cash or bank account xxxxxx
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Ans. Of 3rd Question

There is no need to pass closing entries , if you do not want split your company data . Because after passing entry tally automatically show effect in company final account .

I think , above guidance will help you for recording your transactions . I hope you will really excel yourself in the field of accounting . Best of Luck ! You can also keep in touch by Our free email newsletter , after Sign up for email newsletter , when , I will publish any new article in my online accounting education journal , it will automatically reach to email or you can also subscribe by RSS facility.


See Also Related Problems solution from my accounting education

How to treat of advance from customers in tally 9
Solution of tally 9 problem regarding voucher entry of Sale and purchase
Solution of major problems for not sending E-mail in tally 9
Solution of tally problem
Problems of Computer Accounting and Its Solution
Solution of the problem relating to stock valuation in sale return in tally 9

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Accounting Education: Solution of Accounting problems from Pakistan
Solution of Accounting problems from Pakistan
Accounting Education
http://www.svtuition.org/2009/02/solution-of-accounting-problems-from.html
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