Khan bought goods worth Rs 5,000 less 20% trade discount on credit from Aziz. Later he found out that out of these goods 50% are defective & hence he returned the same. How shall this transaction of return of goods appear in ledger of Aziz in the books of Khan ?

Debit of Rs 4,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Credit of Rs 5,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Credit of Rs 4,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Debit of Rs 2,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D
Debit of Rs 2,000

Total value of goods = Rs 5,000
Less - Trade Discount = 5,000 $\times$ 20% = Rs 1,000
Value of goods = Rs 5,000 - Rs 1,000 = Rs 4,000
Value of goods returned = Rs $\frac{4000}{2} =$ Rs 2,000
In Aziz's ledger book sales return account shall be debited by Rs 2,000.

Suggest Corrections

Similar questions

Goods worth Rs 1,00,000 were sold to Piyush on credit. He returned the goods of the value of Rs 50,000. Whose account shall be credited & with what amount in this case?

Enter the following transactions of M/s Ketan in Purchase Book, Sales Book, Purchase Returns Book and Sales Returns Book.

2011 March
1	Sold goods to Sudha Stores Rs 29,000 at 10% trade discount.
3	Purchased goods from Meghdoot Traders Rs 37,350 and paid carriage Rs 150.
6	Sudha Stores returned goods of Rs 3,220 (Net).
10	Cash purchases Rs 18,600 and Cash Sales Rs 61,000.
13	Jayesh invoiced goods to us as per our order placed on 28th Feb. 2011 Rs 27,000.
17	Sold goods worth Rs 33,400 to Nandini at 10% trade discount.
20	Returned goods to Jayesh Rs 2,850 as they were defective.
22	Credit purchases from Micky Traders Rs 19,450 and they allowed a trade discount of Rs 150.
23	Nandini returned goods of Rs 1,900 (Gross) as they were damaged.
26	Purchased office furniture on credit from Suhani Furniture Mart Rs 55,000.
29	Purchased goods from Garima Stores for Rs 8,000 and sold the same to Anita at 25% profit on cost.
31	Sent a debit note to Micky Traders for Rs 3,200

Journalise the following transactions in the journal of shri padukone.
(i) Paid cash to Anil 2,400
and discount received from Him 100
(ii) Received cash from Vijay 1,225
and discount allowed to him 25
(iii) Goods sold to Ravish 7,500
Ravish returned goods 500
Received cash from Ravish Rs. 6,875 in full settlement of his account.
(iv) sold goods to Rohan of the list price of Rs. 15,000 at 10% trade discount.
(v) Purchased goods from Bindu of the list price of 5,000 at 15% trade discount.
(vi) Purchased fruniture worth Rs. 20,000 and tools worth Rs. 4,000.
(vii) Paid to Nishant out of business funds for repair fo shri padukone's House Rs. 8,000.
(viii) Supplied goods costing Rs. 12,000 to Peter, issued invoice at 10% above cost less 5% trade discount.

Pass necessary Journal entries' to rectify the following errors:

(i) Goods returned to Mahima for Rs 5,000, entered into Sales Returns Book.

(ii) Kajol returned goods worth Rs 2,000, entered into Purchase Returns Book.

(iii) A credit purchase of Rs 3,000 from Ravina was recorded through Purchase Returns Book.

(iv) Goods worth Rs 1,160 returned to Karishma, were recorded in Purchase Book as Rs 1,106.

Q. The cost of inventory as per physical verification as on 24th March was Rs.4,00,000. Between 24th March and 31st March , the following transaction took place:
(a) Purchases Rs.2,00,000 out of which 20% goods were returned
(b) Sales of Rs.2,00,000 out of which 20% goods were returned. Goods are sold at a profit of 25% on cost. The cost of inventory as per books is __________.

Join BYJU'S Learning Program

Khan bought goods worth Rs 5,000 less 20% trade discount on credit from Aziz. Later he found out that out of these goods 50% are defective & hence he returned the same. How shall this transaction of return of goods appear in ledger of Aziz in the books of Khan ?

The correct option is D Debit of Rs 2,000 Total value of goods = Rs 5,000 Less - Trade Discount = 5,000 × 20% = Rs 1,000 Value of goods = Rs 5,000 - Rs 1,000 = Rs 4,000 Value of goods returned = Rs 40002= Rs 2,000 In Aziz's ledger book sales return account shall be debited by Rs 2,000.