Question

Journalise the following transactions :

2016
March 5		Sold goods to Shruti for ₹80,000 at 15% trade discount and 4% cash discount. Received 75% amount immediately through a cheque.
10		Purchased goods from Richa for ₹60,000 at 10% trade discount and 5% cash discount. 60% amount paid by cheque immediately.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016
Mar.05	Shruti	Dr.		68,000
	To Sales A/c				68,000
	(Goods sold to Shruti at 15% trade discount)
Mar.05	Bank A/c	Dr.		48,960
	Discount Allowed A/c	Dr.		2,040
	To Shruti				51,000
	(Payment received and cash discount allowed)
Mar.10	Purchases A/c	Dr.		54,000
	To Richa				54,000
	(Goods purchased from Richa at 10% trade discount)
Mar.10	Richa	Dr.		32,400
	To Bank A/c				30,780
	To Discount Received A/c				1,620
	(Payment made and cash discount received)

Working Notes:

1. Amount of goods sold would be Rs 68,000 (80,000 - 15% of 80,000) and cash discount would be Rs 2,040, it would be calculated on amount received Rs 51,000 i.e., 75% of Rs 68,000.

2. Amount of goods purchased would be Rs 54,000 (60,000 - 10% of 60,000) and cash discount would be Rs 1,620, it would be calculated on amount paid Rs 32,400 i.e., 60% of Rs 54,000