Jan 10.salaries due to accountant RS. 7000 Jan 12 paid rent RS 5000 for the new year Jan15goods cost price rs. 2500; selling price rs. 3000 were used by the proprietor.Jan21 sold goods costing RS. 8000 to nikhil invoice at 20%above cost ,less than 5%trade discount . Jan 25. brought goods from ritika for RS 16000. journal entry of chandi Lal
Answers
Answer:
Jan 10 : Salary a/c Dr ₹7,000
To Outstanding Salary a/c ₹7,000
(Being salary due to accountant)
Jan 12 : Rent a/c Dr ₹5,000
To Cash a/c. ₹5,000
(Being rent paid)
Jan 15 : Drawings a/c. Dr ₹2,500
To Purchase a/c ₹2,500
(Being goods withdrawn for personal use)
Jan 21 : Nikhil a/c. Dr. ₹9,120
To Sales a/c ₹9,120
(Being goods sold to Nikhil on credit at 20% above cost less 5% trade discount)
Jan 25 : Purchase a/c. Dr ₹16,000
To Ritika a/c. ₹16,000
(Being goods purchased on credit)
Explanation:
Jan 15 : Calculate or take on cost price always except sales.
Jan 21 : Cost price = ₹8,000
Add : 20% above cost = ₹1,600
List price = ₹9,600
Less : Trade discount = 5% of ₹9,600
= ₹480
Invoice price/Sales price = ₹9,120.