Question

Give Journal Entries for the following transactions in the books of Raja Ram & Co. :

2017
March 3		Bought goods for cash of the list price of ₹ 80,000 at 10% trade discount and 2$\frac{1}{2}$% cash discount.
5		Sold goods for cash of the list price of ₹ 1,00,000 at 15% trade discount and 3% cash discount.
6		Sold goods to Nagpal of the list price of ₹ 50,000 at 20% trade discount.
8		Nagpal returned one-fourth of the above goods.
10		Nagpal settled the account by paying cash under a discount of 5%.

Answer 1

Journal In the Books of Raja Ram
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Mar. 03	Purchases A/c	Dr.		72,000
	To Cash A/c				70,200
	To Discount Received A/c				1,800
	(Goods purchased for cash and received cash discount)
Mar. 05	Cash A/c	Dr.		82,450
	Discount Allowed A/c	Dr.		2,550
	To Sales A/c				85,000
	(Goods sold for cash and allowed cash discount)
Mar. 06	Nagpal’s A/c	Dr.		40,000
	To Sales A/c				40,000
	(Goods sold to Nagpal)
Mar. 08	Sales Return A/c	Dr.		10,000
	To Nagpal’s A/c				10,000
	(Goods returned by Nagpal)
Mar. 10	Cash A/c	Dr.		28,500
	Discount Allowed A/c	Dr.		1,500
	To Sales A/c				30,000
	(Cash received in full settlement)
	TOTAL			2,37,000	2,37,000