Question

1) good sold to Ram rupees 1500 at 3% cash discount amount received by cheque.
what's the entry?

Answer 1

Explanation:

(Question ) : good sold to Ram rupees 1500 at 3% cash discount amount received by cheque.

what's the entry?

Journal Entry :

Ram's A/C __________Dr 1455

Disclunt Allowed A/C _____Dr 45

___To Sales A/C ________________1500

Explanation :

Here Ram is personal Account and rules of personal account is : Debit the receiver and credit the giver .... Here Ram is the receiver so Ram's Account will be debited .

And also Ram received discount on what he bought at rupees 1500 . He received 3% of 1500 , it means he received 45 rupees ( 3% of 1500 = 3/100 * 1500 = 45 ) ..

And , Sales Account will be credited..