6th a record the following transaction in the journal of Mohan 2018 De...
Journal entry for transactions in December 2018 for Mohan
Date | Particulars | L.F. | Debit (Rs.) | Credit (Rs.)
-----|------------|------|-------------|------------
2 Dec | Purchases A/c | Dr. | 17,000 |
| To Amit A/c | | | | 17,000
5 Dec | Gopal A/c | Dr. | 10,800 |
| To Sales A/c | | | 12,000 |
| To GST A/c | | | 1,200 |
8 Dec | Amit A/c | Dr. | 3,400 |
| To Purchases Return A/c | | | 3,400 |
12 Dec | Sales Return A/c | Dr. | 2,700 |
| GST A/c | Dr. | 300 |
| To Gopal A/c | | | 3,000 |
Explanation:
Mohan had four transactions in December 2018, which are as follows:
1. Maut quotes from Amit of the list price rupees 20000 at 15% trade discount
On December 2, Mohan purchased goods from Amit for a list price of Rs. 20,000. Amit gave a 15% trade discount on the list price. The trade discount is calculated as follows:
List price = Rs. 20,000
Trade discount = 15%
Trade discount = 20,000 x 15 / 100 = Rs. 3,000
Net price = List price – Trade discount = 20,000 – 3,000 = Rs. 17,000
The journal entry for this transaction is:
Purchases A/c Dr. Rs. 17,000
To Amit A/c Rs. 17,000
2. Sold goods to Gopal of the list price rupees 12000 at 10% trade discount
On December 5, Mohan sold goods to Gopal for a list price of Rs. 12,000. Mohan gave a 10% trade discount on the list price. The trade discount is calculated as follows:
List price = Rs. 12,000
Trade discount = 10%
Trade discount = 12,000 x 10 / 100 = Rs. 1,200
Net price = List price – Trade discount = 12,000 – 1,200 = Rs. 10,800
The journal entry for this transaction is:
Gopal A/c Dr. Rs. 10,800
To Sales A/c Rs. 12,000
To GST A/c Rs. 1,200
3. Goods returned to Amit of list price rupees 4000
On December 8, Mohan returned goods to Amit for a list price of Rs. 4,000. The journal entry for this transaction is:
Amit A/c Dr. Rs. 3,400
To Purchases Return A/c Rs. 3,400
4. Gopal returned goods of list price rupees 3000
On December 12, Gopal returned goods to Mohan for a list price of Rs. 3,000. The journal entry for this transaction is:
Sales Return A/c Dr. Rs. 2,700
GST A/c Dr. Rs. 300
To Gopal A/c Rs. 3,000