MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Sales Tax

in of Journal...

Question

Journalise the following transactions in the books of Kanishk Traders:

(i) Sold goods costing ₹ 1,20,000 to Charu at a profit of $33 \frac{1}{3}$ % on cost less 15% Trade Discount.

(ii) Sold goods costing ₹ 80,000 to Arun against cheque at a profit of 25% on cost less 15% Trade Discount.

(iii) Paid by cheque ₹ 8,400 as insurance premium for a period of 12 months starting 1st August 2016. Financial year closes on 31st March every year.

Open in App

Solution

Journal
In the Books of Kanishk

Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)

i) Charu’s A/c (WN1) Dr. 1,36,000

To Sales A/c
1,36,000

(Goods sold to Charu)

ii) Bank A/c (WN2) Dr. 85,000

To Sales A/c
85,000

(Goods sold to Arun)

iii) Insurance A/c Dr. 8,400

To Bank A/c
8,400

(Insurance premium paid through cheque)

Prepaid Insurance A/c Dr. 2,800

To Insurance A/c
2,800

(Insurance premium paid in advance for four months)

TOTAL 2,32,200 2,32,200

Working Notes:

WN1: Calculation of amount of goods sold to Charu
$C o s t = 1, 20, 000 A d d : P r o f i t @ 33 \frac{1}{3} % o n 1, 20, 000 = \frac{40, 000}{1, 60, 000} L e s s : T r a d e D i s c o u n t @ 15 % o n 1, 60, 000 = \frac{24, 000}{1, 36, 000}$

WN2: Calculation of amount of goods sold to Arun
$C o s t = 80, 000 A d d : P r o f i t @ 25 % o n 80, 000 = \frac{20, 000}{1, 00, 000} L e s s : T r a d e D i s c o u n t @ 15 % = \frac{15, 000}{85, 000}$

Suggest Corrections

thumbs-up

52

Similar questions

Q. Journalise the following transactions:
(a) Goods destroyed by Fire for ₹ 5,000.
(b) Paid by cheque ₹ 25,000 as wages on installation of a Machinery.
(c) Issued a cheque in favour of M/s Parmatma Saran & Sons on account of purchase of goods ₹ 75,000.
(d) Goods sold costing ₹ 60,000 to M/s Kalu Sons at an invoice price 10% above cost less 5% Trade discount.

Q. Journalise the following transactions in the books of M/s. R.K. & Co.:
(i) Purchased goods of list price of ₹ 20,000 from Vishal at 20% trade discount against cheque payment.
(ii) Purchased goods of list price of ₹ 20,000 from Naman at 15% trade discount against cash.
(iii) Purchased goods of list price of ₹ 30,000 from Amrit at 20% trade discount.
(iv) Purchased goods of list price of ₹ 40,000 for ₹ 35,000 for cash.
(v) Goods returned of list price ₹ 10,000 purchased from Amrit.
(vi) Sold goods to Parul of list price of ₹ 40,000 at 10% trade discount against cheque payment.
(vii) Sold goods to Aman of list price of ₹ 30,000 at 10% trade discount against cash.
(viii) Sold goods to Pawan of list price of ₹ 20,000 at 10% trade discount.
(ix) Sold goods to Yamini of list price of ₹ 25,000 for ₹ 23,000.
(x) Sold goods costing ₹ 10,000 at cost plus 20% less 10% trade discount to Bhupesh.
(xi) Sold goods purchased at list price of ₹ 50,000 less 15% trade discount sold at a profit of 25% less 10% trade discount against cheque.
(xii) Aman returned goods of list price of ₹ 10,000 sold to him at 10% trade discount.

Q. Journalise the following transactions:
(i) Bought goods from Arun for ₹ 2,00,000 at a trade discount of 15% and cash discount of 2%. Paid 80% amount immediately.
(ii) Purchased foods for ₹ 20,000 from X and supplied it to Y for ₹ 26,000.
(iii) Cash withdrawn from bank ₹ 5,000 for personal use and ₹ 25,000 for office use.
(iv) Goods destroyed by fire : Cost Price ₹ 40,000.
(v) Provide 20% depreciation on machinery costing ₹ 50,000.
(vi) Out of insurance paid this year, ₹ 3,000 is related to next year.
(vii) Allow ₹ 5,000 as interest on capital and charge ₹ 1,000 as interest on drawings.
(viii) Sohan who owed us ₹ 25,000 was declared insolvent and a cheque of 40 paise in a ₹ is received from him in full settlement.
(ix) Paid Income Tax ₹ 10,000 by cheque.
(x) Salary paid ₹ 80,000 and Salary Outstanding ₹ 20,000.

Q. Pass Journal entries for the following transactions:−
1. Purchased Machinery for ₹ 20,000 and paid ₹ 200 for its carriage.
2. Received a cheque fo ₹ 4,850 from X in full settlement of his account of ₹ 5,000. Cheque was immediately deposited into bank.
3. Received by cheque a first and final payment of 60 paise in a ₹ from Y who owed us ₹ 10,000.
4. Sold goods to Z for ₹ 10,000 at a trade discount of 20%. Next day a cheque was received from him after deducting 5% cash discount. Cheque was immediately deposited into Bank.
5. Goods costing ₹ 20,000 sold to Manoj at a profit of 20% on cost less 10% trade discount.

Q. Journalise the following transactions in the Journal of Navin Gupta & Sons.:-
1. Out of Insurance premium paid this year, ₹ 15,000 is related to next year.
2. Credit purchases from Ram & Co. for ₹ 50,000. Cash discount will be received at 5% on payment of bill within 10 days.
3. Cash paid to Ram & Co. and discount availed of.
4. Paid Income Tax ₹ 20,000 by cheque.
5. Goods costing ₹ 2,00,000 sold for cash at a profit of 10%.
6. Purchased iron safe for ₹ 2,00,000 filing cabinet for ₹ 50,000 and Computer for ₹ 1,00,000.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Sales tax

MATHEMATICS

Watch in App

explore_more_icon

Explore more

Standard X Mathematics

Join BYJU'S Learning Program

CrossIcon