Question

Goods having list price Rs. 40,000 were sold to Ravi at a trade discount of 10% plus
CGST and SGST @6% each and allowed cash discount @10%. Half of the amount
was paid immediately.
B. Goods of Rs. 2000 were purchased after payment of IGST @ 12% each.
C. Advertisement expenses of Rs. 12,000 plus IGST @ 18% paid by cheque
D. Paid salaries to staff for the month of March Rs. 20,000 by cheque.
E. Paid fees to lawyer Rs. 10,000. CGST and SGST @6% each is levied under Reverse
Charge Mechanism.

Answer 1

Answer:

Explanation:amount after trade discount - 3,60,000

amount to be paid=25% of 3,60,000

=90000

cash discount = 3% of 90000

=2700

journal entry=

purchases a/c dr                        3,60,000

 TO cash a/c                             87300

 TO discount a/c                         2300

 TO ravi a/c                               2,70,000