Question

Pass the following journal entries

1) Sold goods to Ram costing rs 25000 at an invoice price to give 20% on profit on sales, less 10% trade discount ,Ram paid 40% of the amount immediately on which he was allowed further discount of 5%.

2) Paid rent Rs 10, 000 of which 2, 000 is for next year and 1, 000 is for previous year .

3) A horse which was purchased 2 months earlier for 25, 000 died . The horse was insured and the insurance company admitted a claim of Rs 15, 000

Answer 1

Bank dr 10640

Ram dr. 15800

Dicount dr. 560

To sales 27000