Question

Pass journal entries in the books of Shyam:
2019
Dec. 1
Sold goods to Amar of the list price * 50,000 less 15% trade
discount.
Dec. 5
Amar returned goods of list price * 6,000 being defective.
Dec. 8
Amar paid the amount due under a cash discount of 2%.
Dec. 12 Sold goods to Karan of list price * 40,000 at 10% trade
discount and 2% cash discount. Karan paid cash for only
40% value of goods.
​

Answer 1

Answer:

dec 1 Amar A/c dr. 42,500

To sales a/c 42,500

(being goods sold to amar with 15% trade discount)

dec 5 Sales return a/c dr. 5,100

To Amar 5,100

(being defected goods returned by amar)

dec 8 Cash a/c dr. 36,652

Discount a/c dr. 748

To amar 37,400

(being amount received at 2% cash discount)

dec 12 Cash a/c dr. 14,112

Discount a/c dr. 720

To sales a/c 14,832

(Being goods sold to Karan at the list price of 40,000 with 10% t.d. and 2% c.d. and 40% of the cash was received)