Question

USS one journal entry for each of the
I-2.14
a)
from his estate
Approached M for loan of Rs. 10,000, but he paid the amount after
b) Bought from D & Co., goods worth Rs. 6,000 at 15% trade discount
deducting interest in advance for one year at 6% p.a.
c) Sold to L goods worth Rs. 600 less 2.5% cash discount and received
and 2% cash discount terms and paid them half the amount in cash.
from him Rs. 585 net on account by cheque.
d) L's cheque is returned unpaid by bank, marked 'Insufficient funds
e) L is declared insolvent and only 40 paise in the rupee is receive​

Answer 1

Explanation:

c) Sold to L goods worth Rs. 600 less 2.5% cash discount and received

and 2% cash discount terms and paid them half the amount in cash.

from him Rs. 585 net on account by cheque.