sold goods to aman for 2000 at a cash discount of 5% Related: NCERT Solution - Chapter 3 : Recording of Transactions-II(Part 3), Class 11, commerce?

Question

sold goods to aman for 2000 at a cash discount of 5% Related:  NCERT Solution - Chapter 3 : Recording of Transactions-II(Part 3), Class 11, commerce?

Answer

Cash a/c Dr. 1900
discount allowed a/c Dr. 100
To sales a/c. 2000
(Being goods sold to Aman at a cash discount of 5%)

Answer

Cash a/C dr. 1900
dis. a/C dr. 100
to sales a/C 2000

Answer

Recording of Transactions-II

Transaction Details:
- Goods sold to Aman for 2000
- Cash discount of 5%

Recording the Transaction:
To record this transaction, we need to follow the accounting equation, which states that assets equal liabilities plus owner's equity. In this case, we will focus on the increase in assets (accounts receivable) and the increase in owner's equity (revenue).

Step 1: Identify the Accounts Affected:
- Accounts Receivable: This account represents the amount owed by Aman for the goods sold.
- Sales Revenue: This account represents the revenue generated from the sale of goods.

Step 2: Determine the Effect on the Accounts:
- Accounts Receivable will increase by 2000, representing the amount owed by Aman for the goods.
- Sales Revenue will also increase by 2000, representing the revenue generated from the sale.

Step 3: Record the Transaction:
We will record this transaction in a journal entry format.

| Date | Account | Debit | Credit |
|-----------|---------------------|----------|----------|
| | Accounts Receivable | 2000 | |
| | Sales Revenue | | 2000 |

Step 4: Apply the Cash Discount:
Since Aman is eligible for a cash discount of 5%, we need to adjust the accounts accordingly.

Step 5: Identify the Accounts Affected:
- Cash: This account represents the amount received from Aman after applying the discount.
- Sales Discount: This account represents the discount given to Aman for paying in cash.

Step 6: Determine the Effect on the Accounts:
- Cash will decrease by the amount received after applying the discount.
- Sales Discount will increase by the amount of the discount given.

Step 7: Record the Transaction:
We will record this adjustment in a separate journal entry.

| Date | Account | Debit | Credit |
|-----------|-----------------|----------|----------|
| | Cash | | Amount |
| | Sales Discount | Amount | |

Summary:
By following the above steps, we have successfully recorded the transaction of selling goods to Aman for 2000 with a cash discount of 5%. This ensures accurate and organized bookkeeping, allowing businesses to track their financial transactions effectively.

Answer

Cash ac dr 1900
discount allowed ac dr 100
to sales ac 2000

Similar Commerce Doubts

Related: NCERT Solution - Chapter 4 : Recording of Transactions-II(Part 1), Class 11, commerce

show the accounting equation interest on drawing of the transaction? Related: NCERT Solution - Chapter 3 : Recording of Transactions-1(Part 1), Class 11, commerce

Needed a Document for Journal entry? Related: NCERT Solution - Chapter 3 : Recording of Transactions-1(Part 1), Class 11, commerce?

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