Question

journal entry of this equation sold goods to aman of list price rs 30000 at 10% trade discount against cash

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Sales A/c - Nominal A/c, income to the company therefore its credited

Cash A/c - real A/c , money comes in to the company therefore its debited

discount allowed - nominal A/c , its expenses or losses to the company therefore its debited .

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Journal entry

Cash A/c Dr 27000

*Discount Allowed A/c Dr 3000

To sales A/c 30000

(being cash sales made)

*discount allowed = 30000*10%

=3000

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Answer 2

Answer: 29700

Explanation:

Cash a/c d.r

to Sales a/c

[being sold goods to aman of list price rs 30000 at 10%tlTD]