# Question No 22 Chapter No 8 – T.S. Grewal 11 Class

Question No. 22 - Chapter No.8 - T.S. Grewal +1 Book 2019

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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