Next adjustment is coming on your computer screen.
Which one? Which one? Which one?
Today we will teach you
Important adjustment
Charity in the form of goods
It is also important because
Generally it does not happen in any business
That there is a lot of talk of charity
There is a lot of charity
But this is a rare case
That's why people have less information about it
It is a rare case, that's why its entry
Children have not learned much
Even if such a case comes in offices
Then people think
What should we put in its telly?
What should we put in the entry of charity in the form of
goods?
What is the Hindi of charity in the form of goods?
Can you tell me this first?
What is the meaning of this line?
Charity in the form of goods
What is the meaning of this?
Charity in the form of goods
Can you people tell me?
Can't you tell?
Hindi meaning
Charity in the form of goods
Hindi meaning
I am not asking for anything else
Just Hindi meaning
Very good
When we donate some goods
Kajal, where is the definition of ladies first?
How come you are so behind today?
You are doing a backbencher
No problem
Take the experience of that place and see
Charity in the form of goods means
Gifts in donation
If you remember like this
I know you need rhyming
Gifts in donation
For example
There is a samosa shop in our market
In front of the temple
I am telling you a fact
There is a temple in the market
Shiv temple
Have you seen it?
Like Mukesh Halwai
In front of the Shiv temple
There is a samosa shop under the tree
Okay Everyone has seen
There are two brothers
One's name is Tushar
One's name is Mukesh
The two brothers who plant there
Okay
The Tushar in them
I know this
And I have seen many times
In the evening
If you get some kids
Those who ask
The small kids who roam
Or if a needy person sees this
Then he makes two or three samosas
On a daily basis
I have seen it with my own eyes
On a daily basis
I am telling you a fact
And he does not take money from them
If he takes money
Then it will become a normal sale
He does not take money from them
So what will it become?
What will it become?
Charity in the form of goods
This would become
Charity in the form of goods
Okay Yes So what will be its general entry?
Come on the pad
I try to teach its general entry
What will be its general entry?
Friends What is the entry to buy goods?
You just tell me this
Whenever we buy goods
Which account do we debit?
Purchase account
Which account do we debit?
Purchase account
And sir
If in return of buying goods
You have made a payment from cash or bank
Then cash or bank account
Will become
Credit Cash or bank account
Will become
Credit And if you have not made a payment
Bought a loan
Then what will come here?
Credit
What will go instead of cash or bank?
Credit Creditor's account
Suppose you have bought goods worth 10,000
Purchase account
Debit to creditor's account 10,000 10,000
Now when you sell this sir
When you sell this goods
What is the entry to sell?
Think and tell
If cash has been sold
Then what will you do?
You will debit cash or bank account
Money will come
And 2
What will you credit?
Sales account
You will credit
Sales account
Cash or bank account
Debit to sales account
This will be the entry
Suppose you have sold goods worth 9,000
Out of goods worth 10,000
For profit of 3,000
Means 12,000
Out of goods worth 10,000
You have sold goods worth 9,000
You will not sell goods worth 9,000
You will sell expensive
You have sold goods worth 12,000
And if there is a loan
Then what will go instead of cash or bank?
Debtor's account
Very good Kajal
What will go instead of cash or bank?
Debtor's account
Now the remaining goods worth 1,000
You have done charity
Not sold
Donated
You said
Instead of 10,000
Got 12,000
Profit of 2,000
Donated a little
So you have
Charity of 1,000 rupees
Friend Your purchased goods
For 1,000 rupees
You bought by giving money
Or bought a loan
Will pay tomorrow
You had a burden
Of that 1,000 rupees
Now that 1,000 goods
You are going to give someone for free
Who are you going to give?
Free From your heart and mind
And from the angle of feeling
So this is a very good job
But for whom are we doing accounting?
For you or for your business?
For business
From the angle of business
This is a very bad job
Give something for free
What is it always for business?
A loss
You will say
There is no loss
I got a lot of peace
But there is no peace in business
Debt The business will say
You have bought goods worth 1,000
Gave it for free
What did anyone do?
Lost
And what is the loss always?
Debit There is a rule
Debit All expenses and losses
Loss is always
Debit That's why sir
We will do this loss of 1,000 rupees
Debit What will you name?
Charity What will you name?
Charity Remember Charity, Account, Debit 1,000 rupees
Will give this name
Okay Now sir tell me one thing
Kindly tell me one thing
If you do some debit
You will have to do some credit
That's why the entry will be completed
Yes, one account will have to be credited
With 1,000 rupees
That's why the entry will be completed
Which credit account should I do?
Tell me dear children
Which credit account should I do?
Kajal is saying
Credit cash or bank account sir
How Kajal?
Are you giving cash or bank in charity?
Cash or bank is not going anywhere
It went away while buying
Goods Goods What is going now?
Goods What credit will we do?
Goods account
And friends
When goods are brought
Which account is debited?
Purchase Not goods account
So when the goods will go
Without writing goods account
What credit will we do?
Purchase account
When goods will come
Purchase account will be debited
And when goods will go
Purchase account will be credited
As simple as that
Okay Now sir
Charity account
Which has been debited
What will be the effect of this?
This is a loss
I have already told you
So in your profit and loss account
This will be seen on the debit side
In the name of charity 1,000 rupees
Because the debit side of P&L
It takes all the expenses
And all the losses
In itself
And the credit side
It takes all the income
And gains in itself
Sir, what is the difference between income and gain?
When you earn something by investing money
Then it is income
When you did not invest money
Just earned
Then it is gain
Right? Okay sir
Means where you earn something by investing
Then it is income
Where you are not investing
If money comes from there
Then it is gain
Sir, how is it possible
That we are not investing anywhere?
How is it possible
That we are not investing anywhere?
I am talking about investment in cash
Did not invest money in the pocket
Just had to invest energy
Just had to invest time
And earned
Suppose I went somewhere
Okay I was not sent to the institute
On my convention
The expense of going and coming is also of the institute
I had to go there and take the seminar
And I got the money for that
So I did not invest a rupee from my pocket
And I got the money
So it will be called gain
Not income
Okay? Okay sir
So charity will be seen here
Debit side in P&L
And this two purchase
What will be the effect of this?
Which account does the purchase go to?
Can you tell dear children?
In trading
In P&L
Where do you see the purchase?
In trading account
Where do we see the purchase?
In trading account
You had seen the trading account
I had made it well for you
So in that purchase
Which is seen in the trading account
Absolutely right
The effect of the purchase of this credit
It will be that
How much will we have shown the purchase?
In the trading account first
Ten thousand rupees
How much will be shown the purchase?
In the trading account
Ten thousand rupees
Because how much did we buy the goods?
Ten thousand rupees
Now out of that
One thousand goods
We did not have
We gave it to charity
So how much is our net purchase left?
Only and only
Nine thousand rupees
Only and only
Nine thousand rupees
So what will happen with this?
My purchase will be reduced
So sir
If I make P&L account below it
Here So you can see
What is the effect of charity in goods?
It is reduced by purchase
Goes up
And below
Comes in P&L removed that much money from the purchase and
put it in the charity
What are we saying?
Out of the 10,000 that we bought we took 1,000 from here
and what did we do?
We did charity
What did we do? We did charity
Sir, will my balance sheet still be tallied after this?
Yes, your balance sheet will still be tallied after this
Sir, how?
Look, you reduced the purchase name
You reduced the purchase name because of which the gross
profit will increase
If you reduce the purchase name then your profit will
increase
Say yes or no?
Yes or no? Yes
And then in P&L you booked a loss of 1,000
So that much profit will come down
So you reduced the purchase name from 1,000 and from 1,000
you booked a loss
What will be the effect of both?
Once the profit will increase and once the profit will
decrease
So this will keep the effect on our balance sheet neutral
So if someone asks you after today
Charity in the form of goods
So what will you tell him?
Charity in the form of goods means
His general entry
Charity account debit
To what?
To what? Purchase account
Very good
After that
What will be the effect of the charity debit?
What will be the effect of this?
And below in P&L
Debit side will be written
Profit decreased and profit increased
The effect of both is
Neutralized and balance sheet will remain
Balance sheet will remain
Is it done friends?
Sure? Okay So this was the charity in the form of goods
Adjustment Thank you and bye bye