Question

Pass journal entries from the following transactions

i) Bought goods from Mohan of the list price of Rs 50,000 at 15% trade discount

ii) Settled the account of Mohan by paying cash, udar a discount of 4%

Sold goods for cash of the list price of Rs 20,000 at 10% trade discount and 3% cash discount

iv) Provide interest on capital Rs 5,000 to the Proprietor

*Depreciation charged on Machinery for Rs 2,500

Interest for Rs 4,000 taken on drawings​

Answer 1

purchase A/c Dr. 42500

to Mohan A/c. 42500

Mohan Alc Dr 42500

to cash Alc 40800

To discount A/C 1700

recived

cash A/C Dr 17460

discount Alc 540

allowed

to Sales A/c 18000

Interest A/c Dr 5000

to capital a/c 5000

Depreciation Alc Dr 2500

To Machinary Ac 2500

Drawings A/c Dr 4000

to interest Alc 4000

Note:-

• Write narrations for each journal entry
• no to pass journal entry for trade discount only to deduct the amount.

I hope you got it