Question

24. shelves within the Workshop indicate items Awaiting Repair, Awaiting Spares, Goods Inwards Goods
Outwards, Goods awaiting disposal, Goods awaiting further authority and Quarantine (A) labelled (B) unlabelled (C) both (D) none​

Answer 1

Answer:

In the books of Mr. Badhri

Journal Entries

Date

2017 Particulars L.P Dr.

(Rs.) Cr. (Rs.)

Dec 2 Trade receivables A/c Dr. 80,000

To Sales A/c

(Being the goods sent to customers on sale or return basis) 80,000

Dec. 10 Return Inward A/c(Note 1) Dr. 35,000

To trade receivables A/c

(Being the goods returned by customers to whom goods were sent on sale or return basis 35,000

Dec. 23 Sales A/c Dr. 15,000

To trade receivables A/c

(Being the cancellation of original entry of sale in respect of goods on sale or return basis) 15,000

DEc 31 Inventories with customers on Sale or Return A/c Dr. 12,000

To Trading A/c (Note 3)

(Being the adjustment for cost of goods lying with customers awaiting approval) 12,000

Note:

(1) Alternatively, Sales account or Sales returns can be debited in place of Return Inwards account

(2) No entry is required for receiving letter or approval from the customer

(3) Cost of goods with customers =Rs.15,000×100/125=Rs.12000

(4) It has been considered that the transaction values are at invoice price (including profit margin)