Question

Aman returned goods of list price of rs 10000 sold to him at 10% trade discount

Answer 1

Question:

Aman returned goods of list price of rs 10000 sold to him at 10% trade discount. Show the journal entry.

Answer:

Explanation:

                  In the books of journal entry

particulars                                    amount       amount

cash A/C Dr.                                  10000

      To, sales return A/C                                    9000

      To, trade discount A/C                                1000      

[ being goods returned by Aman of Rs. 10000 with 10% trade discount ]

workings:

Trade discount @ 10% = ( 10000 * 10% ) = 1000

Cost of goods transferred to sales return A/C = ( 10000 - 1000 ) = 9000

Answer 2

Answer:

sales return a/c...dr. 9000

to Aman a/c 9000

( being goods returned by Aman)

Explanation:

*always remember*,

comes in - debit

goes out- credit

receiver- debit

giver - credit

expense/loss- debit

income/gains- cedit

trade discount means don't have to show but just deduct it. 10% deducted means 9000. what we already sold is being returned which is *loss* for us so debit it. giver is aman so *debit* it.