Question

Journal Entries :

✨Goods sold worth rs. 3000 at 10% Trade Discount for cash to Raman.
With Explanation.
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Answer 1

Answer:

Raman a/c ......Dr

to sales a/c RS 2700

(here Raman is the receiver of the goods and Raman account is a real account, according to real account rule- debit the receiver , credit the giver . Raman is the receiver so his account is debited . Now sales Acc is a nominal account. according to nominal account rule- debit all expenses and losses, credit all income and gains...sales Acc is credited because because of the sales inflow of cash has taken place. )

Next trade discount is given for the goods sold.

Now 10%of 3000 is 300..hence 3000 -300 is 2700...there is no separate entry for trade discount but it is substracted initially while recording the transaction.