Question

ILLUSTRATION 19.
Journalise the following transactions in the books of Chandan Bros. :
() Received *38,000 from Krishan Swaroop in full settlement of his account for
240,000
(ü) Received 138,000 from Dushyant on his account for £40,000
(iii) Biroo who owed us 15,000 is declared Insolvent and 65 paise in a rupee is
received as final dividend from his estate.
(iv) Sold goods to Kitty list price 20,000, trade discount 10% and cash discount
5%. He paid the amount on the same day and availed the cash discount,
() Supplied goods costing *6,000 to Shakuntla, issued invoice at 10% above cost
less 5% trade discount.
SOLUTION:
Date
JOURNAL OF CHANDAN BROS.
Particulars
L.
F.
Amount
Dr.
Amount
Cr.
S. No.
₹​

Answer 1

Answer:

1. Cash account. dr 38000

discount allowed dr 2000

To Krishan Swaroop. 40000

here amount should 40000 instead of 240000

2. cash account. dr 138000

To Dushyant. 138000

3.cash account. dr 9750

Bad debt account dr 5250

To Biroo. 15000

4. Cash account. dr 17100

Discount allowed. dr. 900

To sales account. 18000

w.n. list price of goods = 20000

(-) trade discount. 2000

. sale = 18000

(-) 5% cash discount 900

amount paid. 27100

5. Shakuntala. dr 6270

To sales account. 6270