Question

pass journal entry goods returned to vinod kumar​

Answer 1

Answer:

purchases return account dr.

to vinod Kumar acc

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Answer 2

Answer:

What is the journal entry of goods sold to Hari?

1.If it is a Credit Sale

Hari A/c (under Sundry Debtor) Dr

To Sales A/c (Direct Income)

2. If it is a Cash Sale

Cash/Bank A/c (Under Current Asset) Dr

To Sale A/c

3. If it involves GST

Cash/Bank/Hari A/c (Sales fig + GST Fig) Dr

To Sale A/c

To CGST A/c (under current liabilities)

To SGST A/c (under current liabilities)

If it is an interstate sale, instead of CGST and SGST A/c, it will be IGST A/c alone.

4. If it is a consignment sale

At the time of sending goods (assuming Hari to be consignment agent)

Hari A/c Dr

To Goods sent on consignment A/c (current asset)

At the time of sale

1.Sale entry

Goods sent on consignment A/c Dr

To Sale A/c

To CGST A/c

To SGST A/c

2. Commission entry

Commission A/c (indirect Expense) Dr

CGST A/c Dr

SGST A/c Dr

To Hari A/c

GST in this commission can be deducted from GST liability.

Note: You may be wondering how these entries will be reducing stock value. These entries won't affect stock value rather they affect Income side and Asset side in the simple entry. Infact whether at the time of purchase or at the time of sale, Stock value in books are not affected. We calculate the closing stock after the year end, then we deduct opening stock value from both P&L and stock value and add closing stock value to both P&L and stock value. So basically stock adjustment is a Financial statement finalisation entry.

Note: if you ask this Question out of curiosity, answer is what I have written. Even I had a doubt that how these entries affect the stock. If your question is sarcastic one like what is 1+1, I don't have answer for that. I just gave a sincere reply for the query.

Please forgive me for any poor language skill as English is not my mother tongue.