Question

Transaction Fund/Activity General Journal Debit Credit 1. Received in the computers and the accompanying liability. 1 Record the receipt of computers and the accompanying liability. Record payment made. 2. Received in the payment made for computers. 2 Record payment made for computers. Record entry to remove encumbrance for computers that has now been received. Record the receipt of computers and the accompanying liability. Record payment made.

Answer 1

Answer:

Sr. No.	Fund / Activity	Transactions	Particulars	Debit	Credit
	Received in the computers and the accompanying liability.
A	Activity	Record the receipt of computers and the accompanying liability.	Computers A/c……….Dr To Liability for purchase of Computers A/c	XXX	XXX
B	Fund	Record payment made.	Liability for purchase of Computers A/c ……….Dr To Bank A/c	XXX	XXX

Sr. No.	Fund / Activity	Transactions	Particulars	Debit	Credit
2.	Received in the payment made for computers.
C	Fund	Record payment made for computers.	Bank A/c …………………….Dr To Receivable on sale of Computers A/c	XXX	XXX
D	Activity	Record entry to remove encumbrance for computers that has now been received.	Budgetary Fund Balance Assigned A/c……………….Dr To Encumbrance A/c	XXX	XXX
E	Activity	Record the receipt of computers and the accompanying liability.	Computers A/c……….Dr To Liability for purchase of Computers A/c	XXX	XXX
F	Fund	Record payment made.	Liability for purchase of Computers A/c ……….Dr To Bank A/c	XXX	XXX

Notes:

1. Entries with Sr. No. A, B, E & F are passed as in the books of Purchaser of Computers.
2. Entries with Sr. No. A and E are same as requested in question.
3. Entries with Sr. No. B and F are same as requested in question.
4. Entries with Sr. No. C is passed as in the books of Seller of Computers.
5. Entries with Sr. No. D is passed as in the books of Purchaser of Computers. This entry is required to be passed when amount of encumbrance is reversed since goods/ services are received.

Before this entry an accountant is required to record a following entry for recording encumbrance with estimated amount of the purchase.

            Encumbrance A/c………………………………… Dr                              XXX

                        To Budgetary Fund Balance Assigned A/c                                             XXX