Question

Pass Journal entry in the book of Sumite
toder,Binar assumed GST 18%
3.
a Rouent goods prom Jharkhand F3.50,000
e paid by cheque immediately
Sold goods to Bunty o uttar pradesh Of $ 2,50,000
La 20% TD discount e recieved a cheque
ammerately wich was deposited in Rank
I sold goods at 4,00,000 to Bu o Bihar
4 goods purchased from Binar earlier e for
5 10,000 when used by the properster for
personal use.
5. Dought furniture for office use & paid by cash
Calo subject to GST)
z salary paid by cheque 510,000 8 salary outstanding
5000
y Reeved 5000 for accund interest on investment
directly by bank
8 Paid Ment F10,000 to land Lord (also subject to
GST)​

Answer 1

Answer

This transaction affects five accounts... Sales account (Goods are sold) .. discount recieved (cash discount) account ... bank account (recieved Cheque)..and Output CGST,output SGST accounts

Trade Discount is not recorded in the books of accounts unlike cash Discount..it is deducted from the List price of that product and the Net price is considered to be the historical price of that product.....

Given Cost Price = 40000

Profit rate = 25%

Profit= Cost Price × Profit rate

= 40000 × 25% = 10000

List Price= Cost Price + Profit

= 40000 + 10000 =50000

Trade Discount rate = 20%

Trade Discount amount= List price × Trade Discount rate..

=50000 × 20 % = 10000

Actual Sale Price = List Price - Trade Discount amount

=50000 - 10000 = 40000

cash discount allowed =2%

40000×2% = 800

Net Amount - discount = 40000 -800 = 39200

Gst = 39200×2% = 4704

The Three golden rules of accounting are

Personal account - Debit the receiver credit the giver

Nominal account - Debit All expenses and losses, credit All incomes and gains

Real account - Debit what comes in, credit what goes out

bank ccount is a real account ..(all assets and Liabilities come under Real account.. cash is a real account)

discount allowed account and Sales account are nominal accounts...(all expenses incomes gains losses come under nominal account.. discount is a loss, sales is an income)

in contention with the above rules...The Journal entries will be...

Bank a/c Dr 48608

discount allowed a/c Dr 800

To sales account 40000

To Output CGST a/c 4704

To output SGST a/c 4704