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Pass journal entry for transaction- Sold goods to Vikas for cash(300000) allowed him 10%discount: 270000 Purchased goods from Gagan for cash(200000) received 5% discount: 190000?
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Pass journal entry for transaction- Sold goods to Vikas for cash(30000...
Cash ac dr270000
to sales ac270000
(being goods sold bn to cash on 10% trade discount)
(300000×10÷100)= 30000
so (300000-30000)=270000
purchase ac dr 200000
to cashac190000(200000-10000)
to discount recived10000(200000×5÷100)
(being purchase goods to cash on 5�sh discount)
to sales ac270000
(being goods sold bn to cash on 10% trade discount)
(300000×10÷100)= 30000
so (300000-30000)=270000
purchase ac dr 200000
to cashac190000(200000-10000)
to discount recived10000(200000×5÷100)
(being purchase goods to cash on 5�sh discount)
Community Answer
Pass journal entry for transaction- Sold goods to Vikas for cash(30000...
Journal Entry for Transaction
When goods are sold for cash with a discount, the cash account is debited for the amount received and the sales account is credited for the amount of the sale. In this transaction, Vikas paid 300,000 for the goods but was given a 10% discount, reducing the cost of the goods to 270,000.
When goods are purchased for cash with a discount, the purchases account is debited for the full amount of the purchase and the cash account is credited for the amount paid. In this transaction, Gagan sold goods to the company for 200,000 but offered a 5% discount, reducing the cost to 190,000.
In both transactions, the company benefited from a discount on the purchase or sale of goods. These transactions would be recorded in the general journal and posted to the appropriate accounts in the general ledger.
Sold Goods to Vikas for Cash with Discount
- Debit: Cash - 270,000
- Credit: Sales - 300,000
When goods are sold for cash with a discount, the cash account is debited for the amount received and the sales account is credited for the amount of the sale. In this transaction, Vikas paid 300,000 for the goods but was given a 10% discount, reducing the cost of the goods to 270,000.
Purchased Goods from Gagan for Cash with Discount
- Debit: Purchases - 200,000
- Credit: Cash - 190,000
When goods are purchased for cash with a discount, the purchases account is debited for the full amount of the purchase and the cash account is credited for the amount paid. In this transaction, Gagan sold goods to the company for 200,000 but offered a 5% discount, reducing the cost to 190,000.
In both transactions, the company benefited from a discount on the purchase or sale of goods. These transactions would be recorded in the general journal and posted to the appropriate accounts in the general ledger.
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Pass journal entry for transaction- Sold goods to Vikas for cash(300000) allowed him 10%discount: 270000 Purchased goods from Gagan for cash(200000) received 5% discount: 190000?
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Pass journal entry for transaction- Sold goods to Vikas for cash(300000) allowed him 10%discount: 270000 Purchased goods from Gagan for cash(200000) received 5% discount: 190000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Pass journal entry for transaction- Sold goods to Vikas for cash(300000) allowed him 10%discount: 270000 Purchased goods from Gagan for cash(200000) received 5% discount: 190000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pass journal entry for transaction- Sold goods to Vikas for cash(300000) allowed him 10%discount: 270000 Purchased goods from Gagan for cash(200000) received 5% discount: 190000?.
Pass journal entry for transaction- Sold goods to Vikas for cash(300000) allowed him 10%discount: 270000 Purchased goods from Gagan for cash(200000) received 5% discount: 190000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Pass journal entry for transaction- Sold goods to Vikas for cash(300000) allowed him 10%discount: 270000 Purchased goods from Gagan for cash(200000) received 5% discount: 190000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pass journal entry for transaction- Sold goods to Vikas for cash(300000) allowed him 10%discount: 270000 Purchased goods from Gagan for cash(200000) received 5% discount: 190000?.
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