1) Sold goods to Kamal Rs. 15,000 on credit and paid carriage behalf of Kamal Rs. 2,000.
2) Goods returned by Kamal Rs. 2,000.
3) Kamal settled his account and allowed him 10% discount.
Required: Journal entries
Answers
Kamal A/c ----dr 17,000
To Sales A/c 15,000
To Carriage A/c 2,000
(being goods sold to Kamal on credit and carriage paid on his behalf.)
Sales Return A/c ----dr 2,000
To Kamal A/c 2,000
(being goods returned by Kamal for Rs. 2,000.)
Cash A/c ----dr 13,500
Discount Allowed A/c ----dr 1,500
To Kamal A/c 15,000
(being payment received by Kamal after allowing a discount of 10 percent.)
GIVEN: Transactions made with Kamal dealing with sales of goods.
TO FIND Journal Entries of the given transaction.
SOLUTION:
We are given in the question,
The transactions are given by a business firm concerning with debtor called Kamal. To whom goods were sold on credit, the carriage expenses were paid on his behalf.
Then, after a few days goods were returned costing Rs. 2,000.
And when the payment was made a trade discount was allowed of ten percent.
Therefore,
Total amount due :
Cost of goods sold 15,000
Add: Carriage expenses paid 2,000
Less: Cost of goods returned 2,000
Total amount due 15,000
Therefore,
The journal entry for the given transactions will be passed as:
Kamal A/c ----dr 17,000
To Sales A/c 15,000
To Carriage A/c 2,000
(being goods sold to Kamal on credit and carriage paid on his behalf.)
Sales Return A/c ----dr 2,000
To Kamal A/c 2,000
(being goods returned by Kamal for Rs. 2,000.)
Cash A/c ----dr 13,500
Discount Allowed A/c ----dr 1,500
To Kamal A/c 15,000
(being payment received by Kamal after allowing a discount of 10 percent.)
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