Enter the following transactions in the Subsidiary Book of Kamal Traders.
9.
2018 Apr
Bought from Suhas goods of 12,000 as per his Invoice No. 41.
Purchased from Virat goods of 7 11,870 less 10% Trade Discount vide Bill No. 12.
Bought from Kuldip goods of * 11,000 less 25% Trade Discount vide Bill No. 12.
Bought from M/s. Art Furniture Works, Furniture for 13,000 vide Invoice No. 84
Sold to Dhiraj goods of 11,500 vide Sales Invoice No. 27
Sold to Raja goods of 12,780 less 5% Trade Discount, vide invoice No. 88
Sold to Suresh goods of 8,000 less 20% Trade Discount
Dhiraj returned goods of 7 500 vide our Credit note No. 14
Suresh returned goods of * 150 (gross) vide our Credit Note No. 115
Returned to Suhas goods 1,200 vide our Debit Note No. 09
Returned to Virat goods of 3 1,300 (Gross) vide our Debit Note No. 10.
Returned to Kuldip goods of 1,100 (Gross) vide our Debit Note No. 11
Answers
Goods distributed as free samples are products given away by a business usually for promotional reasons.
The goods distributed as free samples do not have a sales value and therefore cannot be recorded in the accounting records as sales.
The free product samples do however have a cost which needs to be removed from the cost of sales account and recorded as an expense. The expense account used will depend on the reason the goods were distributed as free samples and might include for example sales and marketing, promotion, advertising, charity or simply a free samples expense account.
Journal Entry :-
Advertisement A/c Dr.
To Purchase A/c
Answer Byavatar
Satyajit Nashimath
SHARE
Answered By
toppr
503 Views
How satisfied are you with the answer?
This will help us to improve better
answr
Get Instant Solutions, 24x7
No Signup required
girl
More Questions by difficulty
EASY
MEDIUM
HARD