2 Sold goods to M/s Ram Babu Brothers for Rs 15,000 on list price, less Trade Discount - Accountancy - Recording of Transactions - I

Question

2 Sold goods to M/s Ram Babu & Brothers for Rs 15,000 on list
price, less Trade
Discount 10% and 5% Cash Discount at 7 days M/s Ram Babu &
Brothers settled
their account immediately

Pushpak Popli · Accepted Answer

Dear Student,

Since the account was settled immediately that means the Cash
discount has also been availed So Net amount paid by M/s Ram Babu
& Brothers would be = List price - Trade discount - Cash
Discount =
15,000-10100×15,000- 5100×15,000-10100×15,000= 15,000 -1,500 - 675= 12,825
Journal entry would be as follows:

Journal

Date
Particulars

LF
Amount (in
Rs)
Amount (in
Rs)

Cash A/c
Discount allowed A/c
To sales A/c
(Sales made after allowing
10% trade discount & 5% Cash Discount)

Dâ€‹â€‹â€‹â€‹â€‹â€‹r
Dr

12,825
675

13,500

Regards,

2. Sold goods to M/s Ram Babu & Brothers for Rs 15,000 on list price, less Trade Discount 10% and 5% Cash Discount at 7 days. M/s Ram Babu & Brothers settled their account immediately

2. Sold goods to M/s Ram Babu & Brothers for Rs 15,000 on list price, less Trade
Discount 10% and 5% Cash Discount at 7 days. M/s Ram Babu & Brothers settled
their account immediately