Question

Journalise the following entry:
Goods sold to Mohan of ₹150000 on 20% trade discount and 10% cash discount and half amount received in cash​

Answer 1

Answer:

First let's calculate trade discount

50,0000 *10%= 5000(TD is not shown in books of accounts)

So price of goods comes 50,000–50000=45000

Now cash discount= 10% on 45000(Cash Discount is shown in books) so 10% is 45000*10%=4500

Now the price of goods comes to =45000–4500= 40500

Now coming to amount received is 50% by cheque 20% by cash & 30% still remaining

So 50% of 40500=20250

And 20% of 40500= 8100

And remaining 30% = 12150

So now coming to journal entry is

Goods sold so goods goes out so it will be credited cash comes in form of bank & cash so it's Debited and still 30% amt is remaining to take from Raj so Raj is our debtor and it will be debited

So coming to journal entry:-

Raj a/c Dr………20250

Cash a/c Dr…. 8100

Bank a/c Dr……12150

Cash Discount a/c dr …4500

……..To Sales a/c……………………….₹ 45000

(Being Goods sold & half payment received)

Explanation:

hope its helpful