Question

Sold goods to varun of list price 25000 at 20% trade discount

Answer 1

your journal entry will be:

Barun a/c. Dr. 20000

to sales a/c. 20000

(being goods sold to Barun)

Answer 2

JOURNAL

Explanation:

we need to pass the journal

there are some basic rules for journal

Increase in Asset debit

Revenue will be credited

Our transaction is

Sold goods to varun of list price 25000 at 20% trade discount

Aspect 1. Sold goods to varun , sale is our revenue and revenue will be credit.

Aspect 2. for credit sale debtor will be increased so varun will be debited

according to above rule Increase in Asset

Journal Entry

Particular                                                 Dr.(Amount)   Cr.(Amount)

Varun A/C     Dr.                                      20000

    To Sales  A/C                                                                  20000

(Being Sold goods to varun)

Working note:

Note : Trade discount is 20% given . it is that discount that reduce product cost directly.

so ,

                           Cost = 25000

Less : Trade discount = 5000 (25000 x $\frac{20}{100}$)

              Net Cost   =   20000

Now entry will be passed by above amount

https://brainly.in/question/5183282