Question

A). Record the following transactions in the books of Raj General Store:
2020
Jan. 1
Commenced business with cash 50,000; goods 30,000
and furniture 20,000
Jan. 4 Bought goods from Amit of list price 30,000 less trade
discount 15%
Jan. 7
Returned defective goods to Amit of the list price 5,000
Jan. 10 Settled the account of Amit by paying cash under discount
of 2%.
Jan. 15 Sold goods to Mohan of the list price *20,000 less 15% trade
discount and 2% cash discount. Mohan paid 40% price of
goods promptly.​

Answer 1

Key points : After all entry write a statement starting with Being.

CASH DISCOUNT / DISCOUNT is not shown in Journal entry.

ANSWER : TOTAL of Dr. & Cr. Amount is 168,000.

Answer 2

Answer:

jan1. cash a/c. 50,000

stock a/c. 30,000

furniture a/c. 20,000

to capital. 10,0000

being cash 50,000 , goods 30,000and furniture 20,000)

jan4. Purchase a/c. 25,500

to Amit 25,500

(being goods to Amit of list 30,000 less trad dis. 15%)

jan7. Amit a/c. 4,250

to purchase returned a/c 4,250

(being goods to Amit of list 5,000)

jan10. Amit a/c. 21,250

to cash a/c 20850

to dis. received a/c. 425

( being the account of Amit by pay cash dis. of 2%)

jan15. Mohan's a/c 10,200

cash a/c. 6,664

dis.allow a/c 136

to sales a/c 17,800

(being goods to Mohan 20,000 dis.15%trde dis.2% Mohan paid 40% price of goods)

jan20. sales return a/c. 2,550

to Mohan 2,550(Mohan returned of goods of list price 3,000)

jan23. Mohan. 7,650

to cash a/c. 7500

to dis.allow a/c 150

((being Mohan paid 7,500 of his account)

jan27. fright a/c. 500

carriage a/c. 400

stationary a/c 600

to cash a/c. 15,00

(paid freight 500, carriage 400 and stationary 600)

total Answer 1,79700