Question

24. Give journal entries in the books of Mr. Naresh:
2008
Jan 1 Started business with Rs. 10000
Jan 2
purchased goods from Gautam of Rs.1000 at 10% trade discount.
Jan 5 Naresh sold goods of Rs.5000 @5% trade discount and 10% cash discount
Jan 10 Naresh returned goods of Rs.200
Jan 14
gave away as charity goods of Rs.500 and cash Rs.520.​

Answer 1

Journal entries

In the book of Mr. Naresh

2008 Jan 1 Capita a/c Dr. 10,000

. To Cash / Bank a/c 10,000

. (commenced business with cash)

. Jan 2 Purchase a/c Dr 1000

. To Discount received a/c 100

. To Cash/Bank a/c 900

. (purchased goods & received a discount)

. Jan 5 Sales a/c Dr 4,750

. Discount allowed a/c Dr 250

. To Cash/Bank a/c 5,000

. ( goods sold & allowed a discount)

. Jan 10 Sales return a/c Dr 200

. To Naresh a/c 200

. ( goods returned)

. Jan 14 Charity a/c Dr 1,020

. To Purchase a/c 500

. To Cash a/c 520

. ( goods and cash given as charity)