Accounting Entries
By USMANQATAR •
could any one give me the JV's for the following transactions,Thanks
1.X company received the contract of 100,000
2. Received Advance payment of 20,000
3.X company gave the sub contract to Y company 50,000
4.X Company paid the advance to Y 10,000
5.X company received Invoice from Y 25,000
6.X company submitted Invoice to the client 50,000
are contagious :D
Thanks rMs_000 for the result. Out of financial accounting for over 10 years. Long time no see, howz life? visit Indian group sometime to check Tinks mood.
BTW...the OP entries are related to Joint venture contract accounting and been difficult for those having knowledge of general companies accounts.
well said mohdata
X Co Books
No. 1 & 3 - As "saver" mentioned memo only.
2) As "westlife" mentioned
Dr. Cash/Cash in Bank - 20,000
Cr. Unearned income --- 20,000
4) Dr. Receivable (Y Co) - 10,000
Cr. Cash/Cash in Bank - 10,000
5) Dr. Cost/Exps A/C ----- 25,000
Cr. Receivable (Y Co) - 10,000
Cr. Payable (Y co) ---- 15,000
6) Dr. Receivable -------- 30,000
Dr. Unearned Income --- 20,000
Cr. Income/Revenue ---- 50,000
well said mohdata, people just looking for small things to mock at othrs
there's no need to start judging anyone..its possible he is a fresher or with limited experience..or maybe has been asked to handle more than one task by his employer..could be anything..even if not, its his luck and fortune and you don't need to pull him over for that.
Accountancy class? People get job without knowing the job. It happens only in Qatar!
3.5/6 - 60% You are passed! ;-)
1. No entry or Memorandum Entry only
2. Debit Cash/Bank 20,000 and Credit Advances to Client 20,000
3. No Entry or Memorandum entry only
4. Debit Advances to Y Company 10,000 and Credit Cash/Bank 10,000
5. Debit Cost of Jobs/Cost of services 25,000 and Credit Advances to Y Company 20,000 and Credit Account Payable 5,000
6. Debit Account Receivables 30,000, Debit Advances to Client 20,000 and Credit Sales 50,000
You are writing books for company X
1. X company received the contract of 100,000
No Financial transaction hence no accounting entries or
Dr. Accrued income 100,000
Cr. Sundry creditors 100,000
2. Received Advance payment of 20,000
Dr. Cash
Cr. Supplier a/c
Dr. Sundry Creditors
Cr. Accrued income
3.X company gave the sub contract to Y company 50,000
No Financial transaction hence no accounting entries or
Dr. Sundry Debtors
Cr. Y Company's account
4.X Company paid the advance to Y 10,000
Dr. Y Company account
Cr. Cash/Bank account
1. When you receive the contract, there is no need of passing any entries. It depends on the way you account and the nature of business. Normally if it is a trading co., they dont pass any entries. Or you can show as 'Sales Order'(I can be more specific if you tell me which software you use and the nature of business)
2. Debit Bank / Cash, Credit The Advance recived A/c or Supplier A/c (As to which ledger you post normally)
3. Same case as No. 1 - No entry required (Normally)or show as 'purchase' (Depends on your software or nature of work)
4. Debit Advance payment A/c or supplier (As how you account) and Credit Bank.
5. When X received an invoice, Debit the Expense or PUD , Credit the payables to subcontractors A/c (Liability) - When you pay, Debit Payables to Sub Cont and Credit Bank
6. Creidt the Sales A/c (Or whateve account you post your sales) and Debit the Client's A/c.
1.Can you please specify if what contract it is? Does your company receive that contract or the other way around?
2.Cash in Bank
Unearned Income
3.X Company Books
Accounts Receivable - Y Company
Income
Y Company
Charged to Expense or Job No./Name
Accounts Payable - X company
Upon Payment:
Accounts Payable - X Company
Cash in Bank
4. X Company
Advances to Suppliers - Y Company
Cash in Bank
Y Company
Cash in Bank
Unearned Income
5. Same as No. 3 in the books of Y Company.
6. same as no. 3 in the books of x
Are you working in the Accounts without having knowledge of entering JVs?
Hi Accountants, could you help him free of charge?