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.DebitCredit
 Anish, Delhi A/cDr. 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/cDr. 9,878 
 Discount Allowed A/cDr. 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

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 AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
Anish, DelhiPerson  Personal Account Goods received He is  receiverDebit
Sales a/c (Goods)  Assets  Real Account  Goods giving by BusinessGoods Goes outCredit 
CGST Output A/c IncomeNominal AccountTax collected from buyer All income and gains Credit 
SGST Output A/c IncomeNominal AccountTax 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 AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
CashAssets  Real Account Cash comes in Comes in Debit
Discount AllowedLoss   Nominal Account Loss of the businessAll losses & ExpensesDebit
Anish, DelhiPerson  Personal Account Making payment He is  giverCredit 

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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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