Explain the calculations and journal entry for the following transaction:-
Sold goods costing Rs.20,000 to Sunil at a profit of 20% on sale less 20% trade discount and paid cartage Rs.
150 (to be charged by the customer).
CGST & SGST is levied at 6%

Question

Explain the calculations and journal entry for the following
transaction:-
Sold goods costing Rs 20,000 to Sunil at a profit of 20% on sale
less 20% trade discount and paid cartage Rs
150 (to be charged by the customer)
CGST & SGST is levied at 6%

Neha Chopra · Accepted Answer

Dear Student

Journal

Date

Particulars

Debit

Credit

Sunil
A/c

Dr

22,550

To
Sales A/c

20,000

To
Cartage A/c

150

To
Output CGST A/c (@ 6% on Sales Price (20,000 x
6%))

1,200

To
Output SGST A/c (@ 6% on Sales Price (20,000 x
6%))

1,200

(Being goods sold and gst
applied)

Calculation of Sales
Price

Cost
Price

20,000

Add : Profit
20% on sales means 25% on
cost
20,000 x
25%

5,000

Price before
Discount

25,000

Less : Trade
Discount @ 20% on price before
Discount
25,000 x
20%

5,000

Sales Price
after Discount

20,000

Pease note that GST is not applied on cartage as nothing is given
about the same in question

Hope the above amounts and calculation helps
Please get back in case of any query
Regards

Calculation of Sales Price
Cost Price		20,000
Add : Profit 20% on sales means 25% on cost	20,000 x 25%	5,000
Price before Discount		25,000
Less : Trade Discount @ 20% on price before Discount	25,000 x 20%	5,000
Sales Price after Discount		20,000

Explain the calculations and journal entry for the following transaction:- Sold goods costing Rs.20,000 to Sunil at a profit of 20% on sale less 20% trade discount and paid cartage Rs. 150 (to be charged by the customer). CGST & SGST is levied at 6%

Explain the calculations and journal entry for the following transaction:-
Sold goods costing Rs.20,000 to Sunil at a profit of 20% on sale less 20% trade discount and paid cartage Rs.
150 (to be charged by the customer).
CGST & SGST is levied at 6%