Railway Accounts Department Examinations

Showing posts with label sales suspense. Show all posts
Showing posts with label sales suspense. Show all posts

Sunday, April 29, 2018

JOURNAL/ACCOUNTING ENTRIES FOR SCRAP SALES OF RETURNED STORES

JOURNAL/ACCOUNTING ENTRIES FOR SCRAP SALES OF RETURNED STORES



Codal provisions:
 Sales (Capital 7140 and 7150).
I.In the case of cash sales, auction sales or sales by tender where the value of material sold by the Railway is received in advance of actual issue of stores, the credit to this account will appear earlier than the debit. The credit will be by debit to 'Cash'.
(So Sales Suspense A/c is always showing credit balance.  Because Credit appear first in Sales Suspense A/c by debiting the Remittance Into Bank A/c (RIB) .
Example : Rails released from CTR (Complete Track Renewal) work - Journal Entries

STAGES/STEPS

I. On receipt of released material at Scrap Depot   - CJV - Capital Journal Voucher

Date
Particulars
Ledger folio
Debit(Rs)
Credit (Rs.)

Stores in stock A/c  207161-08 -  Dr

100

    To Demand No.16 PH 3100 ( 21-3100) Cr


100
Credit to work at Book value for the released material by taking debit in Stores Suspense A/c

2. When EMD (Earnest Money Deposit) & BSV (Balance Sale Value) received from the successful bidder  - MCR

Date
Particulars
Ledger folio
Debit(Rs)
Credit (Rs.)

Remittance into Bank A/c 008677-88 Dr

90

    To Sales Suspense A/c 207142           Cr


90
On receipt of MCR for EMD/BSV paid by the successful bidder

3. At the time of delivery of material to successful bidder and adjust the difference between Book value and realised value of released materials through Stock Adjustment A/c (SA A/c)    - CJV - Capital Journal Voucher

Date
Particulars
Ledger folio
Debit(Rs)
Credit (Rs.)

Sales suspense A/c  207142 Dr

90

Stock Adjustment A/c 20-7185 Dr

10

    To Stores in Stock A/c 207161-08   Cr


100
On receipt of Issue note for having delivered the material

4. Clearance of Stock Adjustment A/c (SA A/c) by adjusting debit or credit to the Dept/Demand. - CJV -Capital Journal Voucher

Date
Particulars
Ledger folio
Debit(Rs)
Credit (Rs.)

Demand No.16 –PH 3100 (21-3100)   Dr

10

    To Stock Adjustment A/c 20-7185        Cr


10
Clearance of SA A/c by adjusting to the Final Head



Left over of journal entries, after cancel out/nullify the Stores in stock A/c, Sales Suspense A/c & Stock Adjustment A/cs one to one i.e., by equaling Debits/Credits

Date
Particulars
Ledger folio
Debit(Rs)
Credit (Rs.)

Remittance into Bank (RIB) A/c           Dr

90

Demand No.16 –PH 3100 (21-3100)   Dr

10

    To Demand No.16 –PH 3100 (21-3100)   Cr


100



PS: Candidates are advised to furnish the journal entries wherever required /possible to obtain  good scoring in examination.


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