Accountancy, asked by anuragranjan162, 9 months ago

Pass Journal entries for the following transaction:

(i) Bought goods from mohan of the list price of 10,000 at 15% trade discount.

(ii) Settled the account of mohan by paying cash , under discount of 4%.

(iii) Bought goods for cash of the list price of 50,000 at 20 % trade discount and 5% cash discount.

(iv) Sold goods for cash of the list price of 20,000 at 10 % trade discount and 3 % cash discount.​

Answers

Answered by kaurshehnazdeep3
24

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Attachments:
Answered by sureeshravi
1

Answer:

(i) Purchases A/c.......    Dr.          ₹8500
           To Mohan                                         ₹8500
(Being goods purchased on credit, less trade discount of 15%)


(ii) Mohan.........              Dr.          ₹8500
           To Discount received A/c               ₹340
           To Cash A/c                                     ₹8160
(Payment made to Mohan, less 4% cash discount)


(iii) Purchases A/c.....    Dr.          ₹40000
            To Discount received A/c              ₹2000
            To Cash A/c                                    ₹38000
(Being goods purchased, less 20% trade discount and 5% cash discount)


(iv) Cash A/c.......                  Dr.    ₹18430
     Discount allowed A/c... Dr.    ₹570
                    To Sales A/c                           ₹19000
(Being goods sold, less 10% trade discount and 3% cash discount)
         



Explanation:

Journal Entry:

A journal entry is an act of maintaining records of transactions, either economic or non-economic. Transactions are recorded in an accounting journal depicting a company's debit and credit balances. The journal entry can consist of numerous recordings and transactions, each of which is either debit or credit.


Solution:

(i) Purchases A/c.......    Dr.          ₹8500
           To Mohan                                         ₹8500
(Being goods purchased on credit, less trade discount of 15%)


(ii) Mohan.........              Dr.          ₹8500
           To Discount received A/c               ₹340
           To Cash A/c                                     ₹8160
(Payment made to Mohan, less 4% cash discount)


(iii) Purchases A/c.....    Dr.          ₹40000
            To Discount received A/c              ₹2000
            To Cash A/c                                    ₹38000
(Being goods purchased, less 20% trade discount and 5% cash discount)


(iv) Cash A/c.......                  Dr.    ₹18430
     Discount allowed A/c... Dr.    ₹570
                    To Sales A/c                           ₹19000
(Being goods sold, less 10% trade discount and 3% cash discount)


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