sold goods to Vishal traders costing rupees 40000 at 25% profit allowing 10% trade discount and 10% cash discount received 80% payment immediately by cheque
Answers
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Question:
Sold goods to Vishal traders costing rupees 40000 at 25% profit allowing 10% trade discount and 10% cash discount received 80% payment immediately by cheque. Pass the journal entry.
Answer:
In the books of journal entry
particulars amount amount
Cost of goods sold A/C Dr. 40000
To, Vishal traders A/C 40000
[ being goods sold to vishal traders costing Rs. 40000 ]
Vishal traders A/C Dr. 40000
cash A/C Dr. 5000
Trade discount A/C 5000
To, bank A/C 40000
To,sales A/C 10000
[ goods sold to vishal traders with 25 % profit and allowing trade discount and cash discount ]
Explanation: