Please gove me the accounting entry for this?

Question

If I am a jeweller, I distribute gold worth Rs 5 lacs (market price) in a prize distribution, by selling ottery tickets. my cost of goods sold is Rs. 4,50,000. I also deduct TDS on Rs 5 lacs. Please let me know what would be the accounting entry for the same .... what journal entry would i pass in my books and how would it affect my stock ?

Answer 1

Dr. Purchase Rs.450000/-
Cr. Bank or Cash Rs.450000/-
(purchase of gold)

Dr. Prize distribution A/C Rs.500,000/-
Cr. Sales Account Rs.500,000/-
(Prize distributed worth)

DR. Bank Rs.150000/-
Cr. TDS from prize distribution Rs.150000/-
(@ 30% of Rs.5 lac collected from prize-winners)

Dr. TDS from prize distribution Rs.150000/-
Cr. Bank Rs.150000/-
(Amount remitted to Income tax office)

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On close of financial year>>

Dr. Closingstock Nil
Cr. Profit Loss A/c Rs.500000/-
Dr. Purchase A/c Rs.450000/-
Cr. Profit Rs.50000/-

Answer 2

the money account is an asset. All asset debts have a common debit stability hence in case you employ a Tchart with debits on the left and credit on the applicable there might frequently be a huge decision on the left. All cost debts are liabilities and hence frequently having a credit stability on the applicable area of a Tchart. once you're attempting to chop back an asset account (money) you will possibly ought to credit the account or make an get entry to to the applicable area of the Tchart. to enhance an cost account you will possibly ought to make an get entry to into the left hand area of the Tchart or debit that account. hence what this magazine get entry to is doing. perhaps attempt thinking approximately it as debits are advantageous credit are detrimental. sources are debits and liabilities are credit. with the intention to chop back an asset account you will possibly ought to upload a detrimental huge form (credit) to the equation. i be responsive to its complicated beforehand each and every little thing yet as quickly as you get it it is going to come like 2d nature. I ought to be responsive to I quite have a masters in Accounting!