Question

sold goods to Sita for 40000 rupees and discount allowed 10 %

Answer 1

Sita Dr. 36,000
To Sales 36,000

Answer 2

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

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reason for debit and credit

Sales A/c - Nominal A/c ,its a income of the company , therefore its credited

Sita A/c - personal A/c , sita is a buyer who receivers goods , hence sita is receiver its debited

* i assume it as credit sales

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Calculation of sales amount

sales = 40000

Trade discount = 40000*10%

=4000

Net sales = sales - trade discount

=40000-4000

=36000

Trade discount should be deducted from sales value . no journal entry passed for trade discount .

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Journal entry

Sita A/c Dr 36000

To sales A/c 36000

(being credit sales made )