Question

Please give the journal entry for: Sold goods costing Rs. 10000 at cost plus 20% less 10% trade discount to Bhupesh.

Answer 1

bhupesh dr. 10800
to sales account 10800
(being goods sold on credit)
hope you understood

Answer 2

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Sales A/c - Nominal A/c ,its a income of the company , therefore its credited

Bhupesh A/c - personal A/c , he is a buyer who receivers goods , hence its debited

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Calculation of sales

Sales = cost + profit

=10000+(10000*20%)

Sales =12000

Net sales = sales - trade discount

= 12000-(12000*10%)

=10800

* trade discount should be deducted from sales price . no journal entry passed

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Journal Entry

Bhupesh A/c Dr 10800

To sales A/c 10800

(being credit sales made to Bhupesh )

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* No GST added