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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