INSTALLMENT SALES (B.Com Part - II) Lecture # 2:

INSTALLMENT SALES (B.Com Part - II) Lecture # 2:
Installment sales mein under perpetual system yeh entries record ki jati hein:

GENERAL JOURNAL ENTRIES:
(1) PURCHASE MERCHANDISE ON ACCOUNT:
Merchandise (Debit)
Accounts payable (Credit)
Jab merchandise karte hein to perpetual system mein merchandise k naam se record karte hein isi liye yahan merchandise record ki gai hai aur udhar pe purchase ki hai to accounts payable record kiya gaya.

(2) SALE OF MERCHANDISE ON INSTALLMENT BASIS:
Installment accounts receivable (Debit)
Installment sales (Credit)

Jab udhar pe merchandise sale karte hein to accounts receivable ko debit aur sales ko credit karte hein. Installment bhi ek tarah ka udhar hai isliye accounts receivable ki jagah installment accounts receivable aur sales ki jagah installment sales record karte hein takay normal sales aur receivables se alag kar saken.

(3) COST OF INSTALLMENT SALES:
Cost of installment sales (Debit)
Merchandise (Credit)
Perpetual system mein jab merchandise sale karte hein to sales k sath sath uski cost ki entry bhi record karte hein. Jab merchandise purchase ki thi to merchandise (current asset) ko debit kiya tha. Us merchandise mein se jab kuch merchandise sale karte hein to cost increase ho jati hai aur merchandise decrease ho jati hai. Jab cost increase hoti hai to debit aur merchandise decrease hoti hai to credit record karte hein.

(4) DOWN PAYMENT RECEIVED:
Cash (Debit)
Installment accounts receivable (Credit)
Jab customer down payment deta hai to cash increase ho jata hai aur jo amount customer pe due tha sale k waqt us mein se kuch udhar kam ho jata hai aur udhar jab decrease hota hai to credit record karte hein.

(5) INSTALLMENTS RECEIVED / CASH COLLECTION:
Cash (Debit)
Installment accounts receivable (Credit)
Jab customer installment pay karta hai to again cash increase aur receivable decrease hota hai.

(6) REPOSSESSION OF MERCHANDISE (IN CASE OF GAIN):
Merchandise repossessed (Debit)
Unrealized gross profit (Debit)
Gain on repossession (Credit)
Installment accounts receivable (Credit)
Jab customer se merchandise repossessed karte hein to company k pas merchandise increase ho jati hai aur merchandise increase hoti hai to debit record karte hein. Customer pe jitne paise due thay us mein kuch portion company ka profit hota hai. Wo profit ab company ko nahi mile ga isliye profit decrease ho jaye ga aur profit decrease hota hai to debit record karte hein. Repossession mein gain hua to gain credit mein record karte hein aur customer ka udhar khatam ho gaya isliye receivable credit record karte hein.

(7) REPOSSESSION OF MERCHANDISE (IN CASE OF LOSS):
Merchandise repossessed (Debit)
Unrealized gross profit (Debit)
Loss on repossession (Debit)
Installment accounts receivable (Credit)
Jab loss ho repossession mein to loss debit mein record karte hein.

ADJUSTING ENTRIES:
(1) UNREALIZED GROSS PROFIT:
Installment sales (Debit)
Cost of installment sales (Credit)
Unrealized gross profit (Credit)
Deferred gross profit asal mein difference hai installment sales aur cost of installment sales ka. Isliye period k end pe deferred gross profit ko adjust karne k liye entry record karte hein. Jaise closing entries mein revenue aur expenses ko close karte hein to net profit aata hai isi tarah yahan deferred gross profit record karne hai to sirf installment sales aur cost of installment sales close karen ge. Installment sales credit mein thi to jab close karen ge to debit mein record karen ge aur cost of installment sales debit mein likhi to jab close karen ge to credit record karen ge aur inka difference yani unrealized gross profit credit mein record karen ge kyun k profit jab increase hota hai to credit record karte hein.

(2) REALIZED GROSS PROFIT:
Unrealized gross profit (Debit)
Realized gross profit (Credit)
Deferred gross profit mein se jo profit company ko realized ho gaya usay realized gross profit kehte hein. Jab kuch profit realize ho gaya to realized gross profit increase ho jaye ga aur profit increase hoga to credit aur yeh profit company ko unrealized gross profit mein se mila hai jis ka matlab yeh hai k unrealized gross profit decrease ho raha hai aur profit decrease hota hai to debit record karte hein isliye unrealized gross profit ko debit record karte hein.

Installment sales ki entries k liye perpetual system follow hota hai examination point of view. Isi liye yahan sirf perpetual system discuss kar raha hun.