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In this connection, the following types of transactions are routed through banks: advertisements: (i) When cash is deposited into bank: Bank A/c.In this connection, the following journal entry shall be passed: Concerned Asset A/c.(Charity) Goods.Example 1: Aviansh traders sold goods to Manish trader Rs 20,000 and trade discount.Journalise (XI) Distribution of Goods as Free Samples : To promote the sale and awareness of the product, it is necessary that the goods, in which the business enterprise is dealing with, are distributed as free samples.
Now out of this Rs 18000 received 60 of payment immediately which is calculated like this : 18000x therefore cash discount need to be calculated on song i give myself away so you can use me this 10800 which is 10,800 x 2 216 now out of 18000 cash payment after cash discount is and.
80,000 (XVI) Depreciation on Fixed Assets : The apportionment of depreciable amount of the asset and charging the same into revenue during the useful life of the asset is known as depreciation.3,500 for his personal use (XIV) Interest on Drawings: As per separate entity concept, business and business-man are treated as two separate entities, distinct from each other so that interest on drawings charged on the drawings shall be treated as a gain for the business.Rahim made 60 of the payment immediately and received 2 cash discount.To Interest on Drawings A/c illustration 14 (Interest on Drawings) Charge interest on drawing.(Cash withdrawn as drawing) Proprietor withdrew cash.To Purchases A/c (ii) When drawing is booked to capital of the proprietor: Capital A/c.Some of the popular cards are SBI Card, icici Bank Card, hsbc Card etc.It is the reduction in accounts receivable balance when the payment made earlier ( in the discount period ), also it represents a source of short term financing.For recording all petty expenses, the following journal entry shall be passed: Sundry/Miscellaneous Expenses A/c.Manish Dr 18000, to Sale A/c 18000 (being goods sold to manish and TD given).