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    Shyam-Balasubramanian Bandaepalli
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    Employees took inventory worth Rs. 100,000 which was deducted from their salaries. Wages of Rs. 18,000 were paid for machinery erection. Income tax liability of Rs. 117,000 was paid from petty cash. Goods worth Rs. 200,000 were purchased with 10% trade discount and 5% cash discount, resulting in a payment of Rs. 175,000.

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    Employees took inventory worth Rs. 100,000 which was deducted from their salaries. Wages of Rs. 18,000 were paid for machinery erection. Income tax liability of Rs. 117,000 was paid from petty cash. Goods worth Rs. 200,000 were purchased with 10% trade discount and 5% cash discount, resulting in a payment of Rs. 175,000.

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    © All Rights Reserved
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    2 views1 page

    6

    Uploaded by

    Shyam-Balasubramanian Bandaepalli
    Employees took inventory worth Rs. 100,000 which was deducted from their salaries. Wages of Rs. 18,000 were paid for machinery erection. Income tax liability of Rs. 117,000 was paid from petty cash. Goods worth Rs. 200,000 were purchased with 10% trade discount and 5% cash discount, resulting in a payment of Rs. 175,000.

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    © All Rights Reserved
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    of 1

    (i) Employees had taken inventory worth 

    1,00,000 (Cost price  75,000) on the eve of Deepawali


    and the same was deducted from their salaries in the subsequent month.
    (ii) Wages paid for erection of Machinery  18,000.
    (iii) Income tax liability of proprietor  1,17000 was paid out of petty cash.
    (iv) Purchase of goods from Naveen of the list price of  2,00,000. He allowed 10% trade discount,
     5,000 cash discount was also allowed for quick payment. 

    1 Employees Advances A/c Dr 100,000.00


    To Inventory A/c 100,000.00

    2 Wages 18,000.00
    To Cash/Bank 18,000.00

    3 Income tax 117,000.00


    To Cash/Bank 117,000.00

    4 Purchases 200,000.00
    To Discount Received - Cash 5,000.00
    To Trade Discount 20,000.00
    To Cash/Bank 175,000.00

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