Journal Entry for Sale of Goods to Dinesh

The journal entry for the transaction of selling goods costing 60000 to Dinesh against a cheque at a profit on cost less 20% trade discount and paid carriage Rs. 500 (not to be charged from the customer) can be recorded as follows:

Date: [Date of the transaction]

Account Title/Description | Debit | Credit
--- | --- | ---
Bank Account | | 60,000
Sales Account | 48,000 |
Discount Received Account | 12,000 |
Carriage Account | 500 |
Cost of Goods Sold Account | 60,000 |

Explanation of the Journal Entry

The above journal entry can be explained as follows:

1. Bank Account: The bank account is debited with the amount of 60,000, which is the selling price of the goods sold to Dinesh. This account is debited because the amount has been received through a cheque.

2. Sales Account: The sales account is credited with the amount of 48,000, which is the selling price of the goods after deducting a 20% trade discount. This account is credited because the company has made a sale.

3. Discount Received Account: The discount received account is credited with the amount of 12,000, which is the amount of discount allowed to Dinesh on the selling price of the goods. This account is credited because the company has allowed a discount to the customer.

4. Carriage Account: The carriage account is debited with the amount of 500, which is the amount paid by the company for the carriage of the goods to the customer. This account is debited because the company has incurred an expense.

5. Cost of Goods Sold Account: The cost of goods sold account is debited with the amount of 60,000, which is the cost of the goods sold to Dinesh. This account is debited because the cost of goods sold is an expense and needs to be recorded in the books of accounts.

Conclusion

Thus, the above journal entry correctly records the transaction of selling goods to Dinesh at a profit on cost less 20% trade discount and paid carriage Rs. 500 (not to be charged from the customer). It helps in maintaining accurate and up-to-date records of the company's financial transactions.

You didn't mention profit in the question i.e. 40%

Bank / Cheque-in-hand A/C Dr. 67,200
Carriage outward A/C Dr. 500

To Sales A/C 67,200
To Cash A/C 500

please note that if cheque is not deposited in bank then the journal entry will be Cheque-in-hand A/C- Dr.
and if the cheque is deposited in the bank then it will be Bank A/C- Dr.