Question No 04 Chapter No 6

Question No 04 Chapter No 6

04. Pass entries for the following transactions in the books of M/s Karthikeyan & Co. of Chennai:

Jun.10Purchased goods from Ravichandran of Madurai of the list price of 2,00,000 at 25% trade discount at 4% cash discount on the purchase price of goods. Paid CGST and SGST @ 9% each. Paid the entire amount by cheque on the same date.
Jun.25Sold goods to Ramalingam of Erode of the list price of 3,75,000 at 20% trade discount and 2% cash discount on sale price. Charged CGST and SGST @ 9% each. The full amount was received by cheque on the same date.

The solution of Question No 04 Chapter No 6: –

In the Books of Radhika Traders
Jun.10Purchases A/cDr. 1,50,000 
 Input CGST A/cDr. 13,500 
 Input SGST A/cDr. 13,500 
 To Bank A/c   1,71,000
 To Discount received A/c   6,000
 (Being Purchased from Mehta Bros.)   
Jun.25Bank A/cDr. 3,48,000 
 Discount Allowed A/cDr. 6,000 
 To Sale A/c.  3,48,000
 To Output CGST A/c   27,000
 To Output SGST A/c   27,000
 (Being Purchased goods and paid by cheque)   
Mar.15Advertisement A/cDr. 40,000 
 Input CGST A/cDr. 3,600 
 Input SGST A/cDr. 3,600 
 To Cash A/c  47,200
 (Being goods sold to Ramalingam @20)   

Working Note: –

Calculation of the amount paid on purchases

List price of goods purchased=2,00,000
Less: trade discount @ 25%=50,000
Add: Input CGST @ 9% 27,000  
Add: Output SGST @ 9% 27,000=54,000
Less: Cash discount @ 2%=6,000
Amount payable=3,48,000

Calculation of the amount received on sales

A list price of goods purchased=3,75,000
Less: trade discount @ 20%=75,000
Add: Input CGST @ 9% 13,500  
Add: Output CGST @ 9% 13,500=27,000
Less: Cash discount @ 4%=2,400
Amount payable=1,71,000


How to make Journal Entries in Accounting – Explanation

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D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

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