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Pass the journal entries for the following of sahil :
April 7 Sold goods to Rakesh against cheque. 50,000
April 10 Sold goods to Raman 25,000 less 10% Trade Discount
April 14 Received cheque from Raman and allowed 2% Cash Discount?
April 7 Sold goods to Rakesh against cheque. 50,000
April 10 Sold goods to Raman 25,000 less 10% Trade Discount
April 14 Received cheque from Raman and allowed 2% Cash Discount?
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Pass the journal entries for the following of sahil : April 7 Sold goo...
Journal Entries for Sahil:
April 7: Sold goods to Rakesh against cheque
- When goods are sold to Rakesh against a cheque, it is considered a credit sale.
- The journal entry for this transaction would be:
- Debit: Bank Account (50,000)
- Credit: Sales Account (50,000)
April 10: Sold goods to Raman with a Trade Discount
- In this transaction, goods were sold to Raman at a discounted price.
- The journal entry for this transaction would be:
- Debit: Raman's Account (22,500)
- Credit: Sales Account (25,000)
- Credit: Discount Allowed Account (2,500)
April 14: Received cheque from Raman with Cash Discount
- When Raman paid with a cheque and received a cash discount, it is considered a settlement of the account.
- The journal entry for this transaction would be:
- Debit: Bank Account (22,050)
- Debit: Discount Received Account (450)
- Credit: Raman's Account (22,500)
In the above journal entries, it is important to note the distinction between Trade Discount and Cash Discount. Trade Discount is given at the time of sale and is recorded as a deduction in the Sales Account, while Cash Discount is given when payment is made promptly and is recorded separately as a discount received. Properly recording these transactions ensures accurate financial reporting and tracking of sales and discounts offered.
April 7: Sold goods to Rakesh against cheque
- When goods are sold to Rakesh against a cheque, it is considered a credit sale.
- The journal entry for this transaction would be:
- Debit: Bank Account (50,000)
- Credit: Sales Account (50,000)
April 10: Sold goods to Raman with a Trade Discount
- In this transaction, goods were sold to Raman at a discounted price.
- The journal entry for this transaction would be:
- Debit: Raman's Account (22,500)
- Credit: Sales Account (25,000)
- Credit: Discount Allowed Account (2,500)
April 14: Received cheque from Raman with Cash Discount
- When Raman paid with a cheque and received a cash discount, it is considered a settlement of the account.
- The journal entry for this transaction would be:
- Debit: Bank Account (22,050)
- Debit: Discount Received Account (450)
- Credit: Raman's Account (22,500)
In the above journal entries, it is important to note the distinction between Trade Discount and Cash Discount. Trade Discount is given at the time of sale and is recorded as a deduction in the Sales Account, while Cash Discount is given when payment is made promptly and is recorded separately as a discount received. Properly recording these transactions ensures accurate financial reporting and tracking of sales and discounts offered.
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Pass the journal entries for the following of sahil : April 7 Sold goods to Rakesh against cheque. 50,000April 10 Sold goods to Raman 25,000 less 10% Trade DiscountApril 14 Received cheque from Raman and allowed 2% Cash Discount?
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Pass the journal entries for the following of sahil : April 7 Sold goods to Rakesh against cheque. 50,000April 10 Sold goods to Raman 25,000 less 10% Trade DiscountApril 14 Received cheque from Raman and allowed 2% Cash Discount? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Pass the journal entries for the following of sahil : April 7 Sold goods to Rakesh against cheque. 50,000April 10 Sold goods to Raman 25,000 less 10% Trade DiscountApril 14 Received cheque from Raman and allowed 2% Cash Discount? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pass the journal entries for the following of sahil : April 7 Sold goods to Rakesh against cheque. 50,000April 10 Sold goods to Raman 25,000 less 10% Trade DiscountApril 14 Received cheque from Raman and allowed 2% Cash Discount?.
Pass the journal entries for the following of sahil : April 7 Sold goods to Rakesh against cheque. 50,000April 10 Sold goods to Raman 25,000 less 10% Trade DiscountApril 14 Received cheque from Raman and allowed 2% Cash Discount? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Pass the journal entries for the following of sahil : April 7 Sold goods to Rakesh against cheque. 50,000April 10 Sold goods to Raman 25,000 less 10% Trade DiscountApril 14 Received cheque from Raman and allowed 2% Cash Discount? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pass the journal entries for the following of sahil : April 7 Sold goods to Rakesh against cheque. 50,000April 10 Sold goods to Raman 25,000 less 10% Trade DiscountApril 14 Received cheque from Raman and allowed 2% Cash Discount?.
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