Question

Goods costing ₹40000 sold to Kapil at a profit of 20% on sales less 10% trade discount plus CGST and SGST @6% each and received a cheque under 2% cash discount

Answer 1

Answer:

bank ac dr 47416

dis allowed ac dr 864

To sales ac 43200

To output cgst ac 2540

to output sgst ac. 2540

Answer 2

Required entry is written as follows:

Journal Entry in the books of ____

1. Bank a/c Dr                               49,392

  Discount Allowed a/c Dr                900

              To Sales a/c                                45,000

              To Output CGST a/c                     2,646

              To Output SGST a/c.                     2,646

(Being Goods costing ₹40000 sold to Kapil at a profit of 20% on sales less 10% trade discount plus CGST and SGST @ 6% each and received a cheque under 2% cash discount)

Working Notes:

Let, sales be x

∴ Profit = 20% on sale =  20x/100

Now,

Sale = Cost + Profit

⇒ x = 40000 + (20x/100)

⇒ x – (20x/100) = 40000

⇒ (100x – 20x)/100 = 40000

⇒ 80x/100 = 40000

⇒ x = (40000 × 100)/80

⇒ x = 4000000/80

⇒ x = 50000

Sales = x = Rs. 50000

Now,

Sales                                  = 50,000

(-) Trade Discount @ 10%  = (5,000)

                                           = 45,000

(-) Cash Discount @ 2%     =    (900)

                                           = 44,100

+ CGST @ 6%                     =   2,646

+ SGST @ 6%                     =  2,646

                                           = 49,392

Trade Discount @ 10% = 50,000 × 10% = 5,000Cash Discount @ 2% = 45,000 × 2% = 900

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