Question

purchase goods from ghanshyam of list price of rupees 50000 at 15% trade discount find journal entry​

Answer 1

Journal Entry for the given transaction

Explanation:

Journal entry for the given transaction in the books of Ghanshyam can be recorded as follows:

Ghanshayam purchased goods at a list price of Rs.50,000 and received 15% trade discount.

Therefore,the final amount of goods can be calculated as follows:

Purchase Price of goods                        Rs.50,000

Less: Trade Discount @15%                   (Rs.7500)

                                                                                         

Net Invoice Price                                     Rs.42500

                                                                                             

Journal:

               

              Purchases A/c           Dr. Rs.42500

                          To Cash A/c               Rs.42500

         (Being goods purchased and Trade discount received @15%)

*Note: The Trade discount provided by the supplier or vendor is not recorded in the journal of the transactions because of fundamentals of accounting.

Cash discount,however, is recorded in the journals of the transaction.

Answer 2

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Journal Entry for the given transaction

Explanation:

Journal entry for the given transaction in the books of Ghanshyam can be recorded as follows:

Ghanshayam purchased goods at a list price of Rs.50,000 and received 15% trade discount.

Therefore,the final amount of goods can be calculated as follows:

Purchase Price of goods                        Rs.50,000

Less: Trade Discount @15%                   (Rs.7500)

                                                                                         

Net Invoice Price                                     Rs.42500

                                                                                             

Journal:

               

              Purchases A/c           Dr. Rs.42500

                          To Cash A/c               Rs.42500

         (Being goods purchased and Trade discount received @15%)

*Note: The Trade discount provided by the supplier or vendor is not recorded in the journal of the transactions because of fundamentals of accounting.

Cash discount,however, is recorded in the journals of the transaction.