Goods costing ₹500 given as charity (Sales price ₹600)....
Journalise the transaction...
Answers
Answered by
35
The journal entry is given below with the explanation.
Explanation:
The entry for goods given away as charity will be :
Charity A/c Dr. 500
To Purchases A/c 500
Charity account is debited as it is treated as an expense for the company.
Purchases account is credited as goods given as charity from own stock reduces the amount of purchases so we credit the purchase account to reduce the amount of purchases.
Answered by
4
Answer:
charity a/c ......dr
Explanation:
to purchase a/c
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