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On april 6th sold goods to anuradha for rs.10,00,00 on terms 10% trade discount and 5% cash discount if the payment is received within fifteen days. 80% of payment is received on 18th april by cheque. What is the journal entry and how?
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On april 6th sold goods to anuradha for rs.10,00,00 on terms 10% trade...
Journal Entry for Sale of Goods with Trade and Cash Discount:
The following journal entry will be recorded in the books of the seller for the sale of goods to Anuradha:
On April 6th:
- Accounts Receivable (Anuradha) Dr. 10,00,000
- Sales Cr. 10,00,000
On April 18th:
- Cash Dr. 8,20,000 (80% of 10,00,000)
- Discount Allowed Dr. 30,000 (5% of 10,00,000)
- Accounts Receivable (Anuradha) Cr. 10,00,000
Explanation:
The journal entry for the sale of goods to Anuradha on April 6th will be a straightforward entry, where the seller will debit the Accounts Receivable account and credit the Sales account.
On April 18th, when the seller receives 80% of the payment, the journal entry will be recorded with the following accounts:
1. Cash Account: The seller will debit the Cash account for the amount received, i.e. 80% of the total sale price.
2. Discount Allowed Account: As per the terms of the sale, the seller allowed a 5% cash discount to Anuradha for making the payment within 15 days. Therefore, the seller will debit the Discount Allowed account for the amount of discount given.
3. Accounts Receivable Account: The seller will credit the Accounts Receivable account for the total sale price of goods sold.
This journal entry records the receipt of payment and the discount allowed to Anuradha.
The following journal entry will be recorded in the books of the seller for the sale of goods to Anuradha:
On April 6th:
- Accounts Receivable (Anuradha) Dr. 10,00,000
- Sales Cr. 10,00,000
On April 18th:
- Cash Dr. 8,20,000 (80% of 10,00,000)
- Discount Allowed Dr. 30,000 (5% of 10,00,000)
- Accounts Receivable (Anuradha) Cr. 10,00,000
Explanation:
The journal entry for the sale of goods to Anuradha on April 6th will be a straightforward entry, where the seller will debit the Accounts Receivable account and credit the Sales account.
On April 18th, when the seller receives 80% of the payment, the journal entry will be recorded with the following accounts:
1. Cash Account: The seller will debit the Cash account for the amount received, i.e. 80% of the total sale price.
2. Discount Allowed Account: As per the terms of the sale, the seller allowed a 5% cash discount to Anuradha for making the payment within 15 days. Therefore, the seller will debit the Discount Allowed account for the amount of discount given.
3. Accounts Receivable Account: The seller will credit the Accounts Receivable account for the total sale price of goods sold.
This journal entry records the receipt of payment and the discount allowed to Anuradha.
Community Answer
On april 6th sold goods to anuradha for rs.10,00,00 on terms 10% trade...
Anuradha a/c. 855000
dis allowed a/c. 45000
to sales a/c. 900000
cash a/c. 720000
to anuradha a/c. 720000
dis allowed a/c. 45000
to sales a/c. 900000
cash a/c. 720000
to anuradha a/c. 720000
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On april 6th sold goods to anuradha for rs.10,00,00 on terms 10% trade discount and 5% cash discount if the payment is received within fifteen days. 80% of payment is received on 18th april by cheque. What is the journal entry and how?
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On april 6th sold goods to anuradha for rs.10,00,00 on terms 10% trade discount and 5% cash discount if the payment is received within fifteen days. 80% of payment is received on 18th april by cheque. What is the journal entry and how? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about On april 6th sold goods to anuradha for rs.10,00,00 on terms 10% trade discount and 5% cash discount if the payment is received within fifteen days. 80% of payment is received on 18th april by cheque. What is the journal entry and how? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On april 6th sold goods to anuradha for rs.10,00,00 on terms 10% trade discount and 5% cash discount if the payment is received within fifteen days. 80% of payment is received on 18th april by cheque. What is the journal entry and how?.
On april 6th sold goods to anuradha for rs.10,00,00 on terms 10% trade discount and 5% cash discount if the payment is received within fifteen days. 80% of payment is received on 18th april by cheque. What is the journal entry and how? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about On april 6th sold goods to anuradha for rs.10,00,00 on terms 10% trade discount and 5% cash discount if the payment is received within fifteen days. 80% of payment is received on 18th april by cheque. What is the journal entry and how? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On april 6th sold goods to anuradha for rs.10,00,00 on terms 10% trade discount and 5% cash discount if the payment is received within fifteen days. 80% of payment is received on 18th april by cheque. What is the journal entry and how?.
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