Plzz explain me this journal entry with working notes received by cheque within goÂ»ds aÂ»ting 40 0(X) to against a - Accountancy - Recording of Transactions - I

Question

Plzz explain me this journal entry with working notes

Rashi Lokwani · Accepted Answer

Dear Student,

JOURNAL

Date
Particulars
L f
Amount Dr
Amount Cr

Bank a/c Dr

43904

Discount allowed a/c Dr

896

To Sales a/c

40000

To Output IGST a/c

4800

(Being goods sold to Anil costing 40000 @ 25% profit

less trade discount 20%, plus IGST @ 12% and cash discount
2%)

Working Notes:

Particulars
Amount

Cost of goods sold
40000

Add : Profit Margin (25% of 40000)
10000

Sale Value (40000 + 10000)
50000

Less : Trade Discount ( 20% of 50000)
10000

Value of goods (50000 - 10000)
40000

Add : Output IGST (12% of 40000)
4800

Invoice value (40000 + 4800)
44800

Less: cash Discount (2% of 44800)
896

Amount received
43904

Regards

Particulars	Amount Dr.	Amount Cr.
Bank a/c Dr.	43904
Discount allowed a/c Dr.	896
To Sales a/c		40000
To Output IGST a/c		4800
(Being goods sold to Anil costing 40000 @ 25% profit
less trade discount 20%, plus IGST @ 12% and cash discount 2%)

Plzz explain me this journal entry with working notes Plzz explain me this journal entry with working notes received by cheque within go»ds a»ting 40.0(X) to against a current dated cheque at a proti of an cost less 20% trade discount plus I GST@ 12%. Cash discount is allowed a olution: JOOPNAL