Answers. Following errors are discovered in the books of Sit Ram Lal. Imports. 1: Payment or Amount received from Mr A of Rs 9,900/-and allowed him the discount of Rs 100/-. Accounting and Journal Entry for Cash Sales. IGST Refund Receivable A/c_____Dr. 25. (ix) Sold goods to Yamini of list price of ₹ 25,000 for ₹ 23,000. Make the necessary entries to rectify them: (i) Purchases Journal was undercast by ₹ 2,150. 23,000 (Being sold goods to Yamini on credit) x. Bhupesh A/c (WN 1) Dr. 10,800 -----To Cash A/c . Sold goods to Rehman & sons Rs. 16,000. Log in. 1,00,000 And Loan From Nepal Rastra Bank Rs. 1,450; allowed him discount of Rs. 1. Solution: Question 8. 20,000 June 2 Sold goods to Nandlal of the list price of Rs. 28. A New Irving Restaurant Does Them Right. Assume payment is received at the time of sale. Question 15. When adding a COGS journal entry, you will debit your COGS Expense account and credit your Purchases and Inventory accounts. (x) Sold goods costing ₹ 10,000 at cost plus 20% less 10% trade discount to Bhupesh. When recording the journal entry for the cost of inventory, posting to the appropriate accounting period is critical, to remain consistent with the matching principle. Purchased goods on credit from krishna journal entry 2 See answers ... book value Rs.500,sold for cash Rs. In the case of cash sales, the “cash account” is debited, whereas “sales account” is credited with the equal amount. To IGST Payable A/c. Answers. Business started with cash in Hand Rs. 5,000. 2,00,000. Calculation of selling price. 975; discount received Rs. 2016. Paid Bilal and Friends cash Rs. CGST and SGST is levied @ 6% each. Pass Journal entry for sale of goods by Rahul, Delhi to Anish, Delhi for ₹ 10,000 less 10% Trade Discount and 2% Cash Discount. Rs. 1. Rs.500 received from K. Krishna was debited to his account. Bank A/c (WN 2) August 2017 : 1 – Commenced business with cash ₹ 4,00,000, Goods ₹ 5,00,000 2 – Sold goods to A and money received through RTGS ₹ 2,50,000 3 – Goods sold to Z on credit for ₹ 20,000 Log in. 5,00,000, Nabil Bank Balance Rs. Purchases Journal was Rs.2,150. Cash sales, on the other hand, are simple and easy to account for. Yamini A/c. 21. The tax levied on the transaction is 10%(IGST). 18,000 (Being sold goods to Pawan on credit) ix. 300. difference between rebate or discount what is it? Sold goods to Krishna on credit Bought goods from Shyam on credit Received from Krishna Allowed him discount Paid cash to Shyam Discount received Krishna returned goods Cash sales for the month Paid rent Paid salary. iv. Typically Excel spreadsheets are used to track the current period inventory costs. Once the inventory is issued to the production department, the cost of goods sold is debited while the inventory account credited. Questions in other subjects: Physics, 01.12.2020 07:50. 30. Ram Lal. Example No. Sold goods to Manohar, list price Rs.4,000, Trade Discount 10% and cash Discount 5% he paid the amount on the same day and availed the cash discount. 20,000 at trade discount of 10% June 4 Nandlal returned goods of the list price of Rs. Inventory is goods that are ready for sale and is shown as Assets in the Balance Sheet. Related Topic – Journal Entry for Credit Purchase and Cash Purchase . 40,000 and Furniture Rs. Select the closest type of Cost of Goods Sold that matches your situation from the Detail Type drop-down. Gave away charity of cash Rs. Post a journal entry for – Goods sold for 5,000 on credit to Mr Unreal. 2: Discount Allowed and the net received amount or total due amount is given Example No. v. Rajanikant is declared insolvent. 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