Question

ent A/c will be debited by 3,50,000. Q.23. Journalise the following transactions in the books of Kanishk Traders : (1) Sold goods costing 31,20,000 to Charu at a profit of 33% on cost less 15% Trade Discount. (ii) Sold goods Costing 80,000 to Arun against cheque at a profit of 25% on cost less 15% Trade Discount. (iii) Paid by Cheque 38,400 as insurance premium for a period of 12 months starting 1st August 2016. Financial year closes on 31st March every year. [Ans. Total 2,32,200]​

Answer 1

Answer:

This information looks superfluous

1.    ent A/c will be debited by 3,50,000.

2. Why Answer 2,32,200

Hence ignored.

Explanation:

1.  Charu A/c Dr 35,27,160.00

      To sales A/c     35,27,160.00

(Being Sold goods costing 31,20,000 to Charu at a profit of 33% on cost less 15% Trade Discount)

3120000*133/100*85/100

Trade discount is only recorded

ii. Bank A/c Dr  85,000.00

            To Sales A/c     85000.00

  (being Sold goods Costing 80,000 to Arun against cheque at a profit of 25% on cost less 15% Trade Discount)

80000*125/100*85/100=

Trade discount is only recorded

iii.  Insurance Premium A/c Dr  25,600.00

    Prepaid Expenses A/c Dr      12,800.00

           To Bank A/c                               38400.00

(Being  Paid by Cheque 38,400 as insurance premium for a period of 12 months starting 1st August 2016, 8 months expenses for this year )