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Journalise in proper format
Mittal Bros. purchased 100 shawls @ Rs. 3,000 per shawl. Allowed 10% Trade Discount 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 @ Rs. 3,000 per shawl. Allowed 10% Trade Discount 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.?
Most Upvoted Answer
Journalise in proper format Mittal Bros. purchased 100 shawls @ Rs. 3,...
Purchase of Shawls
Mittal Bros. purchased 100 shawls at Rs. 3,000 each. The total cost before any discounts is calculated as follows:
- Total Cost = 100 shawls × Rs. 3,000/shawl = Rs. 300,000
Trade Discount Calculation
A trade discount of 10% is applicable on the total cost. The calculation is as follows:
- Trade Discount = 10% of Rs. 300,000 = Rs. 30,000
- Cost after Trade Discount = Rs. 300,000 - Rs. 30,000 = Rs. 270,000
Return of Poor Quality Shawls
Mittal Bros. received 10 shawls of poor quality and decided to return them. The cost of the returned shawls is:
- Cost of Returned Shawls = 10 shawls × Rs. 3,000/shawl = Rs. 30,000
- Revised Cost = Rs. 270,000 - Rs. 30,000 = Rs. 240,000
Cash Discount Calculation
Since Mittal Bros. settled the payment within 10 days, they are eligible for a cash discount of 3%. The calculation is as follows:
- Cash Discount = 3% of Rs. 240,000 = Rs. 7,200
- Final Payment = Rs. 240,000 - Rs. 7,200 = Rs. 232,800
Journal Entries
The journal entries for this transaction would be:
1. Purchase of Shawls
Debit: Purchases Account Rs. 240,000
Credit: Trade Discount Received Rs. 30,000
Credit: Cash/Bank Account Rs. 232,800
2. Return of Poor Quality Shawls
Debit: Returns Account Rs. 30,000
Credit: Purchases Account Rs. 30,000
3. Cash Discount Received
Debit: Cash/Bank Account Rs. 232,800
Credit: Cash Discount Received Rs. 7,200
This structured approach ensures that all transactions are accurately recorded in the ledger.
Mittal Bros. purchased 100 shawls at Rs. 3,000 each. The total cost before any discounts is calculated as follows:
- Total Cost = 100 shawls × Rs. 3,000/shawl = Rs. 300,000
Trade Discount Calculation
A trade discount of 10% is applicable on the total cost. The calculation is as follows:
- Trade Discount = 10% of Rs. 300,000 = Rs. 30,000
- Cost after Trade Discount = Rs. 300,000 - Rs. 30,000 = Rs. 270,000
Return of Poor Quality Shawls
Mittal Bros. received 10 shawls of poor quality and decided to return them. The cost of the returned shawls is:
- Cost of Returned Shawls = 10 shawls × Rs. 3,000/shawl = Rs. 30,000
- Revised Cost = Rs. 270,000 - Rs. 30,000 = Rs. 240,000
Cash Discount Calculation
Since Mittal Bros. settled the payment within 10 days, they are eligible for a cash discount of 3%. The calculation is as follows:
- Cash Discount = 3% of Rs. 240,000 = Rs. 7,200
- Final Payment = Rs. 240,000 - Rs. 7,200 = Rs. 232,800
Journal Entries
The journal entries for this transaction would be:
1. Purchase of Shawls
Debit: Purchases Account Rs. 240,000
Credit: Trade Discount Received Rs. 30,000
Credit: Cash/Bank Account Rs. 232,800
2. Return of Poor Quality Shawls
Debit: Returns Account Rs. 30,000
Credit: Purchases Account Rs. 30,000
3. Cash Discount Received
Debit: Cash/Bank Account Rs. 232,800
Credit: Cash Discount Received Rs. 7,200
This structured approach ensures that all transactions are accurately recorded in the ledger.
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Journalise in proper format Mittal Bros. purchased 100 shawls @ Rs. 3,000 per shawl. Allowed 10% Trade Discount 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.?
Question Description
Journalise in proper format Mittal Bros. purchased 100 shawls @ Rs. 3,000 per shawl. Allowed 10% Trade Discount 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 Journalise in proper format Mittal Bros. purchased 100 shawls @ Rs. 3,000 per shawl. Allowed 10% Trade Discount 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 Journalise in proper format Mittal Bros. purchased 100 shawls @ Rs. 3,000 per shawl. Allowed 10% Trade Discount 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.?.
Journalise in proper format Mittal Bros. purchased 100 shawls @ Rs. 3,000 per shawl. Allowed 10% Trade Discount 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 Journalise in proper format Mittal Bros. purchased 100 shawls @ Rs. 3,000 per shawl. Allowed 10% Trade Discount 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 Journalise in proper format Mittal Bros. purchased 100 shawls @ Rs. 3,000 per shawl. Allowed 10% Trade Discount 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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Here you can find the meaning of Journalise in proper format Mittal Bros. purchased 100 shawls @ Rs. 3,000 per shawl. Allowed 10% Trade Discount 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.? defined & explained in the simplest way possible. Besides giving the explanation of
Journalise in proper format Mittal Bros. purchased 100 shawls @ Rs. 3,000 per shawl. Allowed 10% Trade Discount 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 Journalise in proper format Mittal Bros. purchased 100 shawls @ Rs. 3,000 per shawl. Allowed 10% Trade Discount 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 Journalise in proper format Mittal Bros. purchased 100 shawls @ Rs. 3,000 per shawl. Allowed 10% Trade Discount 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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