1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
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 $\mathbit{C}\mathbit{o}\mathbit{s}\mathbit{t}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{}\mathbf{1}\mathbf{,}\mathbf{20}\mathbf{,}\mathbf{000}\phantom{\rule{0ex}{0ex}}\mathbit{A}\mathbit{d}\mathbit{d}\mathbf{:}\mathbf{}\mathbit{P}\mathbit{r}\mathbit{o}\mathbit{f}\mathbit{i}\mathbit{t}\mathbf{}\mathbf{@}\mathbf{}\mathbf{33}\frac{\mathbf{1}}{\mathbf{3}}\mathbf{%}\mathbf{}\mathbit{o}\mathbit{n}\mathbf{}\mathbf{1}\mathbf{,}\mathbf{20}\mathbf{,}\mathbf{000}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{}\mathbf{}\frac{\mathbf{40}\mathbf{,}\mathbf{000}}{\mathbf{1}\mathbf{,}\mathbf{60}\mathbf{,}\mathbf{000}}\phantom{\rule{0ex}{0ex}}\mathbit{L}\mathbit{e}\mathbit{s}\mathbit{s}\mathbf{:}\mathbf{}\mathbit{T}\mathbit{r}\mathbit{a}\mathbit{d}\mathbit{e}\mathbf{}\mathbit{D}\mathbit{i}\mathbit{s}\mathbit{c}\mathbit{o}\mathbit{u}\mathbit{n}\mathbit{t}\mathbf{}\mathbf{@}\mathbf{}\mathbf{15}\mathbf{%}\mathbf{}\mathbit{o}\mathbit{n}\mathbf{}\mathbf{1}\mathbf{,}\mathbf{60}\mathbf{,}\mathbf{000}\mathbf{}\mathbf{=}\mathbf{}\mathbf{}\frac{\mathbf{24}\mathbf{,}\mathbf{000}}{\mathbf{1}\mathbf{,}\mathbf{36}\mathbf{,}\mathbf{000}}$ WN2: Calculation of amount of goods sold to Arun $\mathbit{C}\mathbit{o}\mathbit{s}\mathbit{t}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{}\mathbf{80}\mathbf{,}\mathbf{000}\phantom{\rule{0ex}{0ex}}\mathbit{A}\mathbit{d}\mathbit{d}\mathbf{:}\mathbf{}\mathbit{P}\mathbit{r}\mathbit{o}\mathbit{f}\mathbit{i}\mathbit{t}\mathbf{}\mathbf{@}\mathbf{}\mathbf{25}\mathbf{%}\mathbf{}\mathbit{o}\mathbit{n}\mathbf{}\mathbf{80}\mathbf{,}\mathbf{000}\mathbf{}\mathbf{=}\mathbf{}\frac{\mathbf{20}\mathbf{,}\mathbf{000}}{\mathbf{1}\mathbf{,}\mathbf{00}\mathbf{,}\mathbf{000}}\phantom{\rule{0ex}{0ex}}\mathbit{L}\mathbit{e}\mathbit{s}\mathbit{s}\mathbf{:}\mathbf{}\mathbit{T}\mathbit{r}\mathbit{a}\mathbit{d}\mathbit{e}\mathbf{}\mathbit{D}\mathbit{i}\mathbit{s}\mathbit{c}\mathbit{o}\mathbit{u}\mathbit{n}\mathbit{t}\mathbf{}\mathbf{@}\mathbf{}\mathbf{15}\mathbf{%}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{}\frac{\mathbf{15}\mathbf{,}\mathbf{000}}{\mathbf{85}\mathbf{,}\mathbf{000}}$

Suggest Corrections
52
Join BYJU'S Learning Program
Related Videos
Sales tax
MATHEMATICS
Watch in App
Explore more
Join BYJU'S Learning Program