Question No 09 Chapter No 5

09. Pass journal entries for the following:

 2019 Jan.6 Purchased goods from Henry for 50,000 on 10% trade discount and 4% cash discount and paid 60% amount by cheque. Jan.15 Bought goods from Amit for 2,00,000 at terms 5% cash discount and 20% trade discount. Paid 3/4th of the amount in cash at the time of purchase. Jan.18 Sold goods to Sherpa at the list price of 50,000 less 20% trade discount and 4% cash discount if the payment is made within 7 days. 75% payment is received by cheque on Jan. 23rd. Jan.25 Sold goods to Garima for 1,00,000, allowed her 20% trade discount and 5% cash discount if the payment is made within 15 days. She paid 1/4th of the amount by cheque on Feb. 5th and 60% of the remainder on Feb.15th in cash

## The solution of Question No 09 Chapter No 5: –

 In the Books of Hari Shankar & Co Date Particulars L.F. Debit Credit 2019 Jan.6 Purchases A/c Dr. 45,000 To Bank A/c * 25,920 To Discount Received A/c 1,080 To Henry’s A/c 18,000 (Being started business with cash, goods, and furniture.) Jan.15 Purchases A/c Dr. 1,60,000 To Bank A/c 1,14,000 To Discount Received A/c 6,000 To Amit’s A/c 40,000 (Being Goods purchased and discount received on cash payment) Jan.18 Sherpa’s A/c Dr. 40,000 To Sales A/c 40,000 (Being Goods sold to Sherpa on credit) Jan.23 Bank A/c Dr. 28,800 Discount Allowed A/c Dr. 1,200 To Sherpa’s A/c 30,000 (Being cash received from Sherpa in full settlement.) Jan.25 Garima’s A/c Dr. 80,000 To Sales A/c 80,000 (Being Goods sold to Garima on credit) Feb.05 Bank A/c Dr. 19,000 Discount Allowed A/c Dr. 1,000 To Garima’s A/c 20,000 (Being Cheque received from Garima and allowed cash discount) Feb.15 Cash A/c** Dr. 60,000 To Garima’s A/c 60,000 (Being Cash received from Garima)

Working Note: –

Calculation of Payment made to Henry*

 Cost Price of goods = 50,000 Less: 10% trade discount = 5,000 Purchases Price = 45,000 Payment in cash Rs 45,000 x 60% = 27,000 Less: cash discount Rs 27,000 x 4% = 50,000 Cash paid = 50,000

Calculation of Payment made to Amit**

 Cost Price of goods = 2,00,000 Less: 20% trade discount = 40,000 Purchases Price = 1,60,000 Payment in cash Rs 1,60,000 x 3/4 = 1,20,000 Less: cash discount Rs 1,20,000 x 4% = 6,000 Cash paid = 1,14,000

Financial Accounting – Introduction and its Functions

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

Chapter 2 Accounting Equations

Chapter 3 Meaning and Objectives of Accounting

Chapter 4 Double Entry System

Chapter 5 Books of Original Entry – Journal

Chapter 6 Accounting for Goods and Service Tax (GST) (Coming soon)

Chapter 7 Books of Original Entry – Cash Book (Coming soon)

Chapter 8 Books of Original Entry – Special Purpose Subsidiary Books (Coming soon)

Chapter 9 Ledger (Coming soon)

Chapter 10 Trial Balance and Errors (Coming soon)

Chapter 11 Bank Reconciliation Statement (Coming soon)

Chapter 12 Depreciation (Coming soon)

Chapter 13 Bills of Exchange (Coming soon)

Chapter 14 Generally Accepted Accounting Principles(GAAP)

Chapter 15 Bases of Accounting

Chapter 16 Accounting Standards and International Financial Reporting Standard(IFRS) (Coming soon)

Chapter 17 Capital and Revenue

Chapter 18 Provisions and Reserves

Chapter 19 Final Accounts (Coming soon)

Chapter 20 Final Accounts – With Adjustments (Coming soon)

Chapter 21 Errors and their Rectification (Coming soon)

Chapter 22 Accounts from Incomplete Records – Single Entry System (Coming soon)

Chapter 23 Accounts of Not-for-Profit Organisations (Coming soon)

Chapter 24 Computerised Accounting System (Coming soon)

Chapter 25 Introduction to Accounting Information System (Coming soon)