Question

5.. Journalise the following transactions in the books of kaveri traders, Bengaluru:
in
May 15. Purchased goods from Nagendra and sons of Belgaum of the list price of Rs.
125000 at 20% trade discount and 5% cash discount on purchase price of
goods. Paid cgst and sgst @ 6% each. Payment was made immediately by
cheque.
May 20. Sold to Arvind Patel and company Hubli goods of the list price of Rs 400000 at
25%trade discount and 3% cash discount on sale price. Charged cgst and sgst@
6% each . Full payment received by cheque at the time of sale itself.
May 22. Sold to bangarappa and brothers of Mysore goods of the list price of Rs 250000
at 20% trade discount and 4% cash discount on sale price. Charged cgst and
sgst @ 6% each. 80% of the amount received by cheque immediately.
May 31. Payment made of balance amount of GST.​

Answer 1

Answer:

Working Notes:

1. Calculation of Sales Price

Sales Price = Goods Sold + Cost – trade discount

Sales Price = 10,000 + 20% – 10% = Rs. 10,800

2. Calculation of Purchase and sales Price

Purchase Price = Purchases goods – Trade Discount

Purchase Price = 50,000 – 15% = Rs.42,500

Sales Price = Goods Sold + Profit – trade discount

Sales Price = 42,500 + 25% – 10% = Rs.47,812.50

Explanation:......................................................