Journal Entry for Supplying Goods to Mohan

Date | Particulars | L.F. | Debit (Rs.) | Credit (Rs.)
--- | --- | --- | --- | ---
[Date] | Mohan A/c | Dr. | 630 |
| To Goods A/c | | | 600
| To GST A/c | | | 30

Explanation:

The above journal entry is made to record the sale of goods to Mohan. Let's break down the entry into its components:

* Date: The date on which the transaction took place.
* Particulars: The names of the accounts involved in the transaction.
* L.F.: The ledger folio numbers where the transaction is recorded in the respective ledger accounts.
* Debit: The amount debited to the Mohan account, which represents the total selling price of the goods.
* Credit: The amount credited to the Goods account, which represents the cost of the goods sold, and the GST account, which represents the GST charged on the sale.

Calculation of the Selling Price:

* Cost of Goods = Rs. 600
* Markup = 10% of Cost of Goods = 0.1 x 600 = Rs. 60
* Selling Price = Cost of Goods + Markup = Rs. 600 + Rs. 60 = Rs. 660

Calculation of the Trade Discount:

* Selling Price = Rs. 660
* Trade Discount = 5% of Selling Price = 0.05 x 660 = Rs. 33
* Net Amount Payable = Selling Price - Trade Discount = Rs. 660 - Rs. 33 = Rs. 627

Therefore, Mohan will pay Rs. 627 for the goods after deducting the trade discount.

Mohan A/c. Dr. 627
To Sales A/c. 627
List Price = 600+ 10% = 660. and Selling price = list price- trade discount = 660- 5% = 627.

Trade discount is not recorded in the books of accounts.