Question

sold goods to ram rs30000 at 10% trade dicount igst charge 12% and recieve cheque from him after allowing 2% cash discount. what is the entry in cashbook?

Answer 1

List Price = Rs.30,000

Trade Discount = 10%(Rs.30,000) = Rs.3000

Agreed Price = Rs.30,000 - Rs.3000 = Rs.27,000

IGST @ 12% = (Rs.27,000) = Rs.3240

Total Amount to be paid = Rs.27,000 + Rs.3240 = Rs.30,240

Cash discount = (Rs.30,420 ) × 2% = Rs.605

Journal Entry :

Bank A/C  Dr  Rs.29,635

Discount Allowed Dr  Rs.605

    To Sales A/C   Rs.30,240

(being goods sold to Ram)