Question

From the following Particulars pass the Journal Entries in an integral accounting system:
(a) Issued materials Rs. 3,00,000 of which Rs. 2, 80,000 (Standard Rs. 2,40,000) is direct material.
(b) Net wages paid Rs. 70,000 deductions being Rs. 12,000 (Standard Rs. 750,00).
(c) Gross salaries payable for the period is Rs. 26,000 (Standard Rs. 25,000). Deduction Rs. 2,000.
(d) Sales (Credit) Rs. 8,00,000.
(e) Discount allowed Rs. 5,000.
(f) Salaries and Wages allocation: Rs. 60,000 direct (Standard Rs. 62,000) and out Of the balance, 50% production, 30% admn. and 20% selling and distribution overheads.

Answer 1

Cost Journal

 

	Particulars	Debit(Rs.)	Credit(Rs.)
(a)	Work-in-progress Control A/c. Dr.	2,40,000
	Material Prlce Variance A/c. Dr.	40,000
	Production Overhead Control A/c. Dr.	20,000
	To Stores Ledger Control Alc.		3,00,000
	(Being the issue of materials and debit to WIP A/c at Standard Material Cost of Rs. 2,40,000)
(b)	Wages Control A/c. Dr.	7,5,000
	Wages Variance A/c.  Dr.	7,000
	To Deduction A/c.		12,000
	To Cash A/c.		70,000
	(Being the net wages paid Rs. 70,000 and Gross Wages Rs. 82,000 out of which debit to wages control A/c at Standard Wages of Rs. 75,000)
(c)	Salaries Control A/c. Dr.	25,000
	Salaries Variance A/c. Dr.	1,000
	To Deduction A/c.		2,000
	To cash A/c.		24,000
	(Being the accounting of Gross Salaries of Rs. 26,000 Standard Rs. 25,000)
(d)	Debtors Control A/c.	8,00,000
	To Sales A/c.		8,00,000
	(Being the accounting of Credit Sales)
(e)	Selling Overheads A/c. Dr.	5,000
	To Debtors A/c.		5,000
	(Being the accounting of Credit Sales)
(f)	WIP Control A/c. Dr.	62,000
	Production Overheads A/c. Dr. (50% of Rs. 40,000 balance)	20,000
	Admn. Overheads A/c. Dr,  (30% of Rs. 40,000)	12,000
	S & D Overheads A/c. Dr.  (20% of Rs. 40,000)	8,000
	To Wages Control A/c.		75,000
	To Salaries Control A/c.		25,000
	To Wages Variance A/c.		2,000
	(Being the allocation of salaries and wages and debit to WIP Control A/c at Standard Wages of Rs. 62,000)
	Total Rs.	13,15,000	13,15,000