Purchased goods from Ram of Rs. 1, 00,000 less 10% Trade discount. He paid half the amount by cheque immediately and availed 2% Cash Discount. B] Sold goods from Rahim of Rs. 1, 00,000 less 10% Trade discount. Received the cheque from Rahim immediately and allowed 2% Cash Discount. C] Goods costing Rs. 3000 were given as sample. D] Received Rs. 875 from Mr. Mahesh in full settlement of his account of Rs. 1500 E] Supplied goods costing Rs. 3,600 to Sanjana. Issued invoice at 20% above cost less 10% trade discount.
Answers
Following are the journal entries for this question.
Explanation:
1) purchase a/c dr. 90,000
to Ram 90,000 ( 1,00,000 - 10 % trade discount )
( being goods purchased from Ram )
2) Ram dr. 45,000
to cash a/c 44,100
to discount received a/c 900
( being payment made to Ram )
3) Rahim dr. 90,000
to sales a/c 90,000 ( 1,00,000 - 10 % trade discount)
( being goods sold to Rahim )
4) bank a/c dr. 97,020
discount allowed a/c dr. 1,980
to Rahim 90,000
( being payment received from Rahim )
5) advertisement a/c dr. 3,000
to purchase a/c 3,000
( being goods given as free sample )
6) cash a/c dr. 875
discount allowed a/c dr. 625
to Mr. Mahesh 1,500
( being payment received from Mr. Mahesh )
7) Sanjana dr. 3,888
to sales a/c 3,888 [ (3600 + 20% of 3600) - 10% trade
discount ]
(being goods sold to Sanjana )