Question

bought goods at list price of 15000 from rakesh,kolkata less 10% trade discount and 5% cash dicount and paid 40% immediately. what is its entry

Answer 1

heyaa,,
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¤ journal entry for bought goods at list price of 15000 from rakesh,kolkata less 10% trade discount and 5% cash dicount and paid 40% immediately will be;
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purchase a/c Dr 13500
to cash a/c 5,130
to discount a/c 270
to Rajesh a/c 8,100
(being goods purchased from Rakesh and paid 40% amount in cash to avail discount of 5%)
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¤ here purchase is expense for the business so it will be debited.
¤ cash is going out from the business so it will be credited.
¤ discount is an income for the business so, it will be credited.
¤ Rakesh is the giver of goods so, it will also be credited.
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hope it helps ☺☺☺

Answer 2

A journal entry is the record of the financial transaction of a business in its financial books.

• The transactions of a business are recorded in a journal, which indicates the debit and credit balances.
• These specific entries can help in the authentication of transactions and also helps to know if they are supported with bills.
• The correct journal entry will be -

Purchase A/c Dr 13,500

Input IGST A/c.      1,620

To Rakesh A/c                   8100

To Cash A/c                       6750

To Discount Received        270

( Being good bought at list price and discounted)

• Working Notes

15000 × 10/100 = 1500 ( 10% trade discount)

= 15,000 - 1500

= 13,500

13,500 × 12/100 = 1620 ( Calculating IGSt)

13,500 × 60/100 = 8100 ( Percentage after discount)

13,500 × 40/100 = 5400 ( 40% payment made)

Now,

5400 × 5/100 = 270 ( Cash discount)

= 5400 - 270 = 5130

5130 + 1620 ( Adding IGSt)

= 6750

#SPJ2