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On 28th March , 2018, a trader sells goods of list price of 1,20,000 at 10% trade discount and 5% cash discount, IGST levied @18%. 2. Sold goods to Vaibhav for 150000 at 20 % trade discount and 5% cash discount. Vaibhav paid immediately through a bankers cheque. IGST@18% will be levied. Pass journal entries for the above transactions?
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On 28th March , 2018, a trader sells goods of list price of 1,20,000 a...
Journal entries for Sales Transactions with Trade and Cash Discounts and IGST
Sales Transactions with Trade and Cash Discounts and IGST involve the following journal entries:
1. Sales Transaction with Trade and Cash Discounts and IGST for 1,20,000
- List Price of Goods Sold: 1,20,000
- Trade Discount: 10% of List Price = 12,000
- Net Amount after Trade Discount: 1,08,000
- Cash Discount: 5% of Net Amount after Trade Discount = 5,400
- Invoice Value after Cash Discount: 1,02,600
- IGST@18% on Invoice Value: 18,468
Journal Entry:
- Bank Account Dr. 1,20,068
- IGST Input Account Dr. 18,468
- Sales Account Cr. 1,20,000
- Trade Discount Account Cr. 12,000
- Cash Discount Account Cr. 5,400
Explanation:
- The Bank Account is debited with the amount received from the customer.
- The IGST Input Account is debited with the IGST amount paid by the trader.
- The Sales Account is credited with the List Price of goods sold.
- The Trade Discount Account is credited with the amount of trade discount given.
- The Cash Discount Account is credited with the amount of cash discount given.
2. Sales Transaction with Trade and Cash Discounts and IGST for 1,50,000
- List Price of Goods Sold: 1,50,000
- Trade Discount: 20% of List Price = 30,000
- Net Amount after Trade Discount: 1,20,000
- Cash Discount: 5% of Net Amount after Trade Discount = 6,000
- Invoice Value after Cash Discount: 1,14,000
- IGST@18% on Invoice Value: 20,520
Journal Entry:
- Bank Account Dr. 1,34,520
- IGST Input Account Dr. 20,520
- Sales Account Cr. 1,50,000
- Trade Discount Account Cr. 30,000
- Cash Discount Account Cr. 6,000
Explanation:
- The Bank Account is debited with the amount received from the customer.
- The IGST Input Account is debited with the IGST amount paid by the trader.
- The Sales Account is credited with the List Price of goods sold.
- The Trade Discount Account is credited with the amount of trade discount given.
- The Cash Discount Account is credited with the amount of cash discount given.
Conclusion:
Sales Transactions with Trade and Cash Discounts and IGST involve the calculation of net amounts after discounts and the application of IGST. The journal entries for such transactions involve debiting the Bank Account and the IGST Input Account and crediting the Sales Account, the Trade Discount Account, and the Cash Discount Account.
Sales Transactions with Trade and Cash Discounts and IGST involve the following journal entries:
1. Sales Transaction with Trade and Cash Discounts and IGST for 1,20,000
- List Price of Goods Sold: 1,20,000
- Trade Discount: 10% of List Price = 12,000
- Net Amount after Trade Discount: 1,08,000
- Cash Discount: 5% of Net Amount after Trade Discount = 5,400
- Invoice Value after Cash Discount: 1,02,600
- IGST@18% on Invoice Value: 18,468
Journal Entry:
- Bank Account Dr. 1,20,068
- IGST Input Account Dr. 18,468
- Sales Account Cr. 1,20,000
- Trade Discount Account Cr. 12,000
- Cash Discount Account Cr. 5,400
Explanation:
- The Bank Account is debited with the amount received from the customer.
- The IGST Input Account is debited with the IGST amount paid by the trader.
- The Sales Account is credited with the List Price of goods sold.
- The Trade Discount Account is credited with the amount of trade discount given.
- The Cash Discount Account is credited with the amount of cash discount given.
2. Sales Transaction with Trade and Cash Discounts and IGST for 1,50,000
- List Price of Goods Sold: 1,50,000
- Trade Discount: 20% of List Price = 30,000
- Net Amount after Trade Discount: 1,20,000
- Cash Discount: 5% of Net Amount after Trade Discount = 6,000
- Invoice Value after Cash Discount: 1,14,000
- IGST@18% on Invoice Value: 20,520
Journal Entry:
- Bank Account Dr. 1,34,520
- IGST Input Account Dr. 20,520
- Sales Account Cr. 1,50,000
- Trade Discount Account Cr. 30,000
- Cash Discount Account Cr. 6,000
Explanation:
- The Bank Account is debited with the amount received from the customer.
- The IGST Input Account is debited with the IGST amount paid by the trader.
- The Sales Account is credited with the List Price of goods sold.
- The Trade Discount Account is credited with the amount of trade discount given.
- The Cash Discount Account is credited with the amount of cash discount given.
Conclusion:
Sales Transactions with Trade and Cash Discounts and IGST involve the calculation of net amounts after discounts and the application of IGST. The journal entries for such transactions involve debiting the Bank Account and the IGST Input Account and crediting the Sales Account, the Trade Discount Account, and the Cash Discount Account.
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On 28th March , 2018, a trader sells goods of list price of 1,20,000 at 10% trade discount and 5% cash discount, IGST levied @18%. 2. Sold goods to Vaibhav for 150000 at 20 % trade discount and 5% cash discount. Vaibhav paid immediately through a bankers cheque. IGST@18% will be levied. Pass journal entries for the above transactions?
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On 28th March , 2018, a trader sells goods of list price of 1,20,000 at 10% trade discount and 5% cash discount, IGST levied @18%. 2. Sold goods to Vaibhav for 150000 at 20 % trade discount and 5% cash discount. Vaibhav paid immediately through a bankers cheque. IGST@18% will be levied. Pass journal entries for the above transactions? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about On 28th March , 2018, a trader sells goods of list price of 1,20,000 at 10% trade discount and 5% cash discount, IGST levied @18%. 2. Sold goods to Vaibhav for 150000 at 20 % trade discount and 5% cash discount. Vaibhav paid immediately through a bankers cheque. IGST@18% will be levied. Pass journal entries for the above transactions? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 28th March , 2018, a trader sells goods of list price of 1,20,000 at 10% trade discount and 5% cash discount, IGST levied @18%. 2. Sold goods to Vaibhav for 150000 at 20 % trade discount and 5% cash discount. Vaibhav paid immediately through a bankers cheque. IGST@18% will be levied. Pass journal entries for the above transactions?.
On 28th March , 2018, a trader sells goods of list price of 1,20,000 at 10% trade discount and 5% cash discount, IGST levied @18%. 2. Sold goods to Vaibhav for 150000 at 20 % trade discount and 5% cash discount. Vaibhav paid immediately through a bankers cheque. IGST@18% will be levied. Pass journal entries for the above transactions? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about On 28th March , 2018, a trader sells goods of list price of 1,20,000 at 10% trade discount and 5% cash discount, IGST levied @18%. 2. Sold goods to Vaibhav for 150000 at 20 % trade discount and 5% cash discount. Vaibhav paid immediately through a bankers cheque. IGST@18% will be levied. Pass journal entries for the above transactions? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 28th March , 2018, a trader sells goods of list price of 1,20,000 at 10% trade discount and 5% cash discount, IGST levied @18%. 2. Sold goods to Vaibhav for 150000 at 20 % trade discount and 5% cash discount. Vaibhav paid immediately through a bankers cheque. IGST@18% will be levied. Pass journal entries for the above transactions?.
Solutions for On 28th March , 2018, a trader sells goods of list price of 1,20,000 at 10% trade discount and 5% cash discount, IGST levied @18%. 2. Sold goods to Vaibhav for 150000 at 20 % trade discount and 5% cash discount. Vaibhav paid immediately through a bankers cheque. IGST@18% will be levied. Pass journal entries for the above transactions? in English & in Hindi are available as part of our courses for Commerce.
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