What will be journal entry of cost of goods sold.

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What will be journal entry of cost of goods sold...

Answer / rahul jaiswal

Since cogs is computed by the following equation i.e opening stock+ net purchases+ all direct expenses-closing stock. There can't be single journal entry for this. The following journal entries are required to pass.
(1) for transfer of opening stock to trading a/c.
Trading a/c dr.
To opening stock a/c
(2) For transfer of net purchases to trading a/c.
Trading a/c dr.
To purchases a/c
(3) For transfer of direct exp. to trading a/c.
Trading a/c dr.
To direct exp. a/c
(4) For transfer of closing stock to trading a/c.
Closing stock a/c dr.
To trading a/c

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What will be journal entry of cost of goods sold...

Answer / shankar

cash a/c. . . . Dr xxxxx
To sales a/c xxxx

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2 No

What will be journal entry of cost of goods sold...

Answer / lakshmi

Example: ABC International has a beginning balance in its inventory asset account of $500,000. It buys $450,000 of materials from suppliers during the month. At month-end, it counts its ending inventory and determines that there is $200,000 of inventory on hand. The cost of goods sold journal entry is?

Cost of goods sold expense 750,000
To Purchases 450000

to investory(5L-2L) 300000

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1 No

What will be journal entry of cost of goods sold...

Answer / surabhi gupta

Trading & P&L A/C dr. 1000
To Cost of goods sold 1000
(being cost of goods sold transferred to Trading & P&L A/c)

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2 No

What will be journal entry of cost of goods sold...

Answer / bipin

Since cogs is an expense.....

Expenses a/c.......dr
To goods a/c.