Pass the following journal entries 1) Sold goods to Ram costing rs 25000 at an invoice price to give 20% - Accountancy -

Question

Pass the following journal entries
1) Sold goods to Ram costing rs 25000 at an invoice price to
give 20% on profit on sales, less 10% trade discount ,Ram paid 40%
of the amount immediately on which he was allowed further discount
of 5%
2) Paid rent Rs 10, 000 of which 2, 000 is for next year and 1,
000 is for previous year
3) A horse which was purchased 2 months earlier for 25, 000 died
The horse was insured and the insurance company admitted a claim of
Rs 15, 000

Jayati Jawa · Accepted Answer

Hey Vineet,
The solution to your query is provided below:

Journal

Date

Particulars

L F

Debit

Amount

(Rs)

Credit

Amount

(Rs)

1

Cash A/c

Dr

10,687 5

Discount Allowed A/c

Dr

562 5

Ram

Dr

16,875

To Sales A/c

28,125

(Sold goods to Ram)

2

Rent A/c

Dr

7,000

Pre-paid Rent A/c

Dr

2,000

Outstanding Rent A/c

Dr

1,000

To Cash A/c

10,000

(Paid Rent)

3

Insurance Company A/c

Dr

15,000

Profit and Loss A/c

Dr

10,000

To Livestock A/c

25,000

(Horse died and insurance company admitted a claim of Rs
15,000)

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Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

1	Cash A/c	Dr.		10,687.5
	Discount Allowed A/c	Dr.		562.5
	Ram	Dr.		16,875
	To Sales A/c				28,125
	(Sold goods to Ram)

2	Rent A/c	Dr.		7,000
	Pre-paid Rent A/c	Dr.		2,000
	Outstanding Rent A/c	Dr.		1,000
	To Cash A/c				10,000
	(Paid Rent)

3	Insurance Company A/c	Dr.		15,000
	Profit and Loss A/c	Dr.		10,000
	To Livestock A/c				25,000
	(Horse died and insurance company admitted a claim of Rs 15,000)