Question

journal entry of this equation sold goods to yamini of list price of rs.25000 for rs.23000

Answer 1

The journal entry for the equation would be -

Yamini a/c Dr. - Rs. 23,000
Discount allowed a/c Dr. - Rs. 2,000
To Sales a/c - Rs. 25,000

Explanation -

Yamini becomes our debtor, so shown on the debit side with discount allowed which is an expense which needs to be debited.

Sales is an income and hence shown on credit side.

The journal entry for a cash transaction would be -


Cash a/c Dr. - Rs. 23,000
Discount allowed a/c Dr. - Rs. 2,000
To Sales a/c - Rs. 25,000.