Question

Sold goods to Pawan of list price 20000 at 10 percent trade discount

Answer 1

Net sales = sales- trade discount

=20000-(20000*10%)

=18000

trade discount= 2000

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

analyse the question- 3 accounts affected

sales - nominal A/c income received therefore its credited

Trade discount - nominal account - loss or expenses to the company therefore its debited

pawan - personal A/c- hes the receiver of goods therefore its debited

Journal entry

Pawan A/c Dr 18000

Discount allowed A/c Dr 2000

To sales A/c 20000

(being credit sales made)

Hope its useful..!!

Answer 2

Answer:

Journalize and post into ledger

1 Sold goods to Pawan at list price of ₹ 20,000 at 10% trade discount.