Question No 22 Chapter No 8 - T.S. Grewal 11 Class

Question No 22 Chapter No 8

Pass Journal entry for sale of goods be Rahul, Delhi to Anish, Delhi for Rs 10,000 less 10% Trade Discount and 2% Cash Discount. Assume payment is received at the time of sale. CGST and SGST is levied @ 6% each.

Solution of Question No 22 Chapter No 8: - 

Gross Sale Price = 10,000/-

Trade Discount = Sale Price * % of discount
= 10,000 * 10%
= 1,000/-

Net Sale Price = Gross Sale Price - Discount
= 10,000 – 1,000
= 9,000/-

Amount of CGST = Net Sale Price * % of CGST
= 9,000* 6%
= 5,40/-

Amount of SGST = Net Sale Price * % of SGST
= 9,000* 6%
= 5,40/-

Invoice Value = Net Purchase Price + CGST + SGST
= 9,000 + 540 + 540
= 10,080/-

Cash Discount = Invoice Value * % of Discount
= 10,080 * 2%
= 202/-

Cash discount always availed at the time of payment and trade discount is availed at the time of dealing/trading/ Negotiation. So, in this question, we can avail cash discount when payment is made within a specific time limit.

In the Books of M/s Vaish Trader, Delhi

Date	Particulars		L.F.	Debit	Credit
	Anish, Delhi A/c	Dr.		10,080
	To Sales A/c				9,000
	To Output CGST A/c				540
	To Output SGST A/c				540
	(Being goods sold to Anish, Delhi )
	Cash A/c	Dr.		9,878
	Discount Allowed A/c	Dr.		202
	To Anish, Delhi A/c				10080
	(Being payment received from Anish, Delhi and allow him discount)

Explanation of All Transactions with images: -

This is not a part of the solution, So you don't have to write it in the exam. So, why we explained if it is not needed. Because This explanation will help you to understand all transactions with logic and you don't need to remember all the transactions but just understand and remember the logic use behind it.

Transaction No. 1

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Anish, Delhi	Person	Personal Account	Goods received	He is  receiver	Debit
Sales a/c (Goods)	Assets	Real Account	Goods giving by Business	Goods Goes out	Credit
CGST Output A/c	Income	Nominal Account	Tax collected from buyer	All income and gains	Credit
SGST Output A/c	Income	Nominal Account	Tax collected from buyer	All income and gains	Credit

Transaction No. 2

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Cash	Assets	Real Account	Cash comes in	Comes in	Debit
Discount Allowed	Loss	Nominal Account	Loss of the business	All losses & Expenses	Debit
Anish, Delhi	Person	Personal Account	Making payment	He is  giver	Credit

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