Question

2016
June 1 Raghunath Bros. started business with cash 80,000; Goods 340,000 and
furniture 520,000)
June 2. Sold goods to Nandlal of the list price of $20.000 at trade discount of 10%​

Answer 1

Answer:

Journal entry

1. Cash     A/c        Dr   80000

   Purchases A/c  Dr  340000

   Furniture A/c     Dr  520000

          To capital A/c                      940000

(being started business with cash , goods , furniture )

2.  Nandlal A/c      18000

         To Sales A/c                18000

(being sold goods )

Explanation:

Sales = gross sales - trade discount

          = 20000- (20000*10%)

          = 20000 - 2000

           = 18000