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 Received A/c Dr.   202  
            ToAnish, Delhi A/c       10080
  (Being payment received from Anish, Delhi and receive discount also)      
         

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

Transaction No. 1 Question No.22 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 22 Chapter No 8 - T.S. Grewal 11 Class
Transactio n No. 1 Question No.22 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 2 Question No.22 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 22 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 2 Question No.22 – Chapter No.8 – T.S. Grewal +1 Book 2019
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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T.S. Grewals Double Entry Book Keeping - Question No 22 Chapter No 8 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

 

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