Question

Ram purchase machinery at 5%discount worth rupees 500000 make the ledger entry

Answer 1

journal entry

Machinery a/c ____(debit) Rs 4,75,000

Discount a/c _____(debit) Rs 25,000

To cash a/c____(credit) Rs 5,00,000

WORKING NOTE=

5,00,000*5/100= 25000

5,00,000-25000=475000

I.e. 25000 is discount amount.

Answer 2

to make ledger we firstly need to make either journal or cash book

so here I m making journal for the following

ram A/c dr 475000

discount allowed A/c dr. 25000

to sales A/c. 500000

(being machinery sold to ram and discount allowed 5%)

*here we have assumed that ram is a customer to the business and bought the machinery on credit

the ledger to be made will be

Ram's A/c

debit side --> to sales

credit side --> by balance c/d

discount A/c

debit side --> to sales

*no balancing will be done as it is nominal account

sales a/c

debit side --> by ram

by sales