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Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days.?
Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days.?
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General entryMittal Bros. purchased 100 shawls @ 3,000 per shawl. Allo...
Purchase of Shawls
Mittal Bros. purchased 100 shawls at a price of 3,000 each. The total cost before any discounts can be calculated as follows:
- Total Cost: 100 shawls x 3,000 = 300,000
Trade Discount
A trade discount of 10% is allowed on the total cost:
- Trade Discount: 10% of 300,000 = 30,000
- Net Cost after Trade Discount: 300,000 - 30,000 = 270,000
Return of Poor Quality Shawls
Mittal Bros. received 10 shawls of poor quality and returned them:
- Cost of Returned Shawls: 10 shawls x 3,000 = 30,000
- Adjusted Net Cost: 270,000 - 30,000 = 240,000
Cash Discount
Since Mittal Bros. settled the payment within 10 days, they are eligible for a 3% cash discount:
- Cash Discount: 3% of 240,000 = 7,200
- Final Payment Amount: 240,000 - 7,200 = 232,800
Journal Entry
The journal entry for the transaction will be as follows:
- Purchases Account Debit: 240,000
- Trade Discount Received: 30,000
- Cash Discount Received: 7,200
- Cash/Bank Account Credit: 232,800
This reflects the accurate financial position of Mittal Bros. after the purchase, returns, and discounts received.
Mittal Bros. purchased 100 shawls at a price of 3,000 each. The total cost before any discounts can be calculated as follows:
- Total Cost: 100 shawls x 3,000 = 300,000
Trade Discount
A trade discount of 10% is allowed on the total cost:
- Trade Discount: 10% of 300,000 = 30,000
- Net Cost after Trade Discount: 300,000 - 30,000 = 270,000
Return of Poor Quality Shawls
Mittal Bros. received 10 shawls of poor quality and returned them:
- Cost of Returned Shawls: 10 shawls x 3,000 = 30,000
- Adjusted Net Cost: 270,000 - 30,000 = 240,000
Cash Discount
Since Mittal Bros. settled the payment within 10 days, they are eligible for a 3% cash discount:
- Cash Discount: 3% of 240,000 = 7,200
- Final Payment Amount: 240,000 - 7,200 = 232,800
Journal Entry
The journal entry for the transaction will be as follows:
- Purchases Account Debit: 240,000
- Trade Discount Received: 30,000
- Cash Discount Received: 7,200
- Cash/Bank Account Credit: 232,800
This reflects the accurate financial position of Mittal Bros. after the purchase, returns, and discounts received.
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General entryMittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days.?
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General entryMittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about General entryMittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for General entryMittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days.?.
General entryMittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about General entryMittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for General entryMittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days.?.
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General entryMittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days.?, a detailed solution for General entryMittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days.? has been provided alongside types of General entryMittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days.? theory, EduRev gives you an
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