Question

Record the transaction in the books of ravi gupta:
Jan. 1 Goods of list price of rs. 15,000 sold at a trade discount of 8%.
Jan. 10 Paid cash after deducting 5% discount to Sunil bansal to whom rs. 18,000 was payable.

Write the journal entry.​

Answer 1

Answer:

Jan 1. Cash/Bank ac Dr. 13,800

To Sales ac 13,800

Jan 10. Sunil Bansal Dr. 18,000

To Cash ac 17,100

To Discount ac 900

Explanation:

1. Trade Discount is not recorded in Journal since it is a general discount allowed to all customers as a SALES PROMOTION strategy.