Journal Entry for Sales with Trade Discount

Explanation:
When goods are sold with a trade discount, it means that the seller offers a discount to the buyer to encourage sales or to reward the buyer for their loyalty. In this case, Radhika sold goods worth Rs. 10,000 to Raj with a trade discount of 10%. Let's break down the journal entry for this transaction.

1. Identify the Accounts Involved:
In this transaction, there are two accounts involved:
- Sales Account: To record the revenue generated from the sale of goods.
- Raj's Account: To record the amount receivable from Raj.

2. Determine the Amounts:
The total selling price of the goods sold is Rs. 10,000. Since there is a trade discount of 10%, the actual amount receivable from Raj will be calculated as follows:
Selling Price - Trade Discount = Amount Receivable
Rs. 10,000 - (10% of Rs. 10,000) = Rs. 9,000

3. Journal Entry:
The journal entry to record the sale of goods to Raj with a trade discount will be as follows:

Date: [Date of the transaction]
Accounts Involved:
- Raj's Account (Debtor)
- Sales Account (Revenue Account)

Journal Entry:
Raj's Account Dr. 9,000
To Sales Account 9,000

Explanation of the Journal Entry:
- Raj's Account is debited with the amount receivable from Raj, i.e., Rs. 9,000. This increases the accounts receivable from Raj.
- The Sales Account is credited with the selling price of the goods, i.e., Rs. 9,000. This represents the revenue generated from the sale of goods.

Conclusion:
The journal entry for the sale of goods to Raj with a trade discount of 10% is recorded by debiting Raj's Account and crediting the Sales Account. This transaction helps in maintaining accurate records of sales and accounts receivable.