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Question
State whether the following statement is True or False with reasons.
Trade discount is recorded in the books of accounts.
Options
True
False
Solution
This statement is False.
Trade discount is a general discount, allowed on catalog price or on the price list price. For increasing the sale or to give sufficient margin to retailers, generally trade discount is allowed. Therefore, the trade discount is not to be recorded in the books of accounts.
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Journalise the following transactions in the books of Gajanan
2019 May
3 Purchased goods for ₹ 90,000 and amounts paid by Bank directly.
7 Sold goods to Satish on credit ₹ 30,000.
9 Paid for Postage ₹ 10,000.
12 Paid for Wages ₹ 15,000.
15 Received cheque of ₹ 30,000 from Satish.
21 Received Dividend ₹ 5000.
25 Purchased Laptop of ₹ 40,000 and paid by cheque.
28 Deposited cash ₹ 10,000 into State Bank of India.
31 Purchased goods for ₹ 40,000 and paid by RTGS
Journalise the following transactions in the books of Ashok General Stores.
2019 May
1 Received ₹ 5,000 from Ram on behalf of Bharat.
4 Purchased Goods for cash ₹ 55,000.
8 Paid for Salary ₹ 8,000.
12 Purchased goods from Ganesh ₹ 30,000 on credit.
17 Sold goods to Mrs. Neha ₹ 60,000 on credit.
20 Purchased Machinery of ₹ 80,000 @ 12% GST and amount paid by cheque.
25 Paid to SG & Sons by cheque ₹ 30,000.
28 Received Commission ₹ 10,000 from Ganesh.
30 Paid Rent ₹ 5000.
31 Purchased Shares of Atul Company Ltd. for ₹ 10,000 through Demat account.
Journalise the following transactions in the books of Sanjay General Stores:
2019 June
1 Started business with cash ₹ 50,000, Bank ₹ 1,00,000, Goods worth ₹ 50,000.
5 Purchased goods from Mohan on credit ₹ 80,000 at 10% Trade Discount.
9 Sold goods to Urmila ₹ 30,000 at 5% Trade Discount.
12 Paid into Dena Bank ₹ 40,000.
15 Goods worth ₹ 5000 were distributed as a free samples.
22 Paid for Commission ₹ 5,000 to Anand.
24 Received ₹ 28,000 from Urmila in full settlement of her account by Debit Card.
29 Paid for Advertisement ₹ 9,000.
30 Purchased Laptop for ₹ 20,000 @ 28% GST and amount paid by NEFT.
Journalise the following transactions in the books of Kunal Stores.
2018 August
1 Purchased goods of ₹ 90,000 at 10% Trade Discount and 10% Cash Discount from Rakesh and 1/3rd amount paid by cheque.
5 Opened current account in State Bank of India by depositing ₹ 60,000.
8 Cash purchases ₹ 85,000.
10 Goods sold on credit to Tushar ₹ 20,000 @ 10% Trade Discount.
12 Paid Salary ₹ 4,000.
16 Tushar returned goods of ₹ 250.
17 Goods taken by Kunal for his private use ₹ 2,000.
20 Purchased Laptop of ₹ 40,000 from Joshi Electronics @ 18% GST and paid by cheque.
22 Rent paid by cheque ₹ 15,000.
25 Purchased Motor car worth ₹ 2,00,000 for cash @ 18% GST and paid by Bank.
26 Goods distributed as free sample ₹ 4,000.
28 Purchased goods from Amit of ₹ 60,000 on credit.
30 Paid by ECS cash to Amit ₹ 58,500, who allowed us a discount of ₹ 1,500.
30 Sold goods ₹ 5,000 at a loss of ₹ 1,000
31 Sold goods for ₹ 20,000.
Journalise the following transactions in the books of Nina General Stores.
2018 Sept
1 Sold goods of ₹ 50,000 at 10% Trade Discount and 10% Cash Discount to Raj and received 50% by cheque and 20% by cash.
3 Bought goods worth ₹ 60,000 from Prashant at 7.5% Trade Discount and half amount paid by cash.
5 Returned goods worth ₹ 550 to Prashant.
7 Sold goods worth ₹ 90,000 to Ranvir on credit at 10% Trade Discount.
12 Received Commission ₹ 4,500.
15 Received cheque of ₹ 80,000 from Ranvir in full settlement of his account.
18 Purchased Computer worth ₹ 80,000 from Reliance Company by cheque at 28% GST.
22 Wages paid ₹ 13,000.
23 Paid for Life Insurance premium ₹ 17,000.
27 Sold goods worth ₹ 28,000 to Tushar who paid us ₹ 18,000 immediately
Journalise the following transactions in the books of Varun
2018 Oct.
1 Purchased Machinery of ₹ 95,000 and paid ₹ 5,000 for freight.
3 Purchased goods for ₹ 1,50,000 and amount paid by Bank.
6 Purchased Laptop from Nagesh & Co. worth ₹ 1,80,000 @ 18% GST.
10 Paid into Bank of Baroda ₹ 70,000.
12 Paid for Rent ₹ 4,000 and Commission ₹ 3,000.
15 Bought goods from Tushar Company Ltd. ₹ 1,20,000 at 12% GST and paid 1/2 amount by RTGS.
16 Cash purchases ₹ 50,000 amount paid by cheque.
20 Invoiced goods to Satish ₹ 80,000 at 12% GST and the amount received by cheque.
25 Paid for Telephone charges ₹ 90,000
27 Mrs. Varsha bought goods from us ₹ 90,000 at a 12% Trade Discount.
28 Purchased goods from Abhijeet & Sons ₹ 1,50,000 at 18% GST.
30 Paid to Abhijeet & Sons and received 10% Cash Discount by cheque.
31 Paid for Advertisement ₹ 8,000 and Brokerage ₹ 12,000.
Journalise the following transactions in the books of Harbhajan & Co. for the month of 1st April 2019:
Balance on 1st April 2019
Cash in hand ₹ 35,000, Cash at Bank ₹ 25,000, Furniture ₹ 1,50,000, Laptop ₹ 1,00,000
Debtors: Sangita ₹ 40,000, Viru ₹ 30,000
Creditors: Ganesh ₹ 10,000, Garima ₹ 40,000, Bank loan ₹ 50,000.
2019 April
1 Purchased goods from Ajay Kumar worth ₹ 2,50,000 at 10% Trade discount @ 18% GST and paid 1/4 amount in Cash.
5 Purchased shares of Infosys Company ₹ 50,000 and ₹ 500 paid as a brokerage for Demat A/c.
8 Sold goods to Raj worth ₹ 90,000 at 10% Trade discount and 1/3 amount received by cash and 5% cash discount is allowed.
12 Paid house rent of proprietor ₹ 9,000 and office rent ₹ 5,000.
15 Purchased Laptop of ₹ 60,000 @ 18% GST and paid amount by cheque.
20 Paid transport charges on the above Laptop ₹ 1,000 @ 18% GST.
25 Paid Commission ₹ 20,000 to Ram.
26 Paid Telephone Charges ₹ 1,000.
28 Transferred from private Bank A/c of proprietor to business Bank A/c ₹ 40,000.
30 Bought goods for ₹ 1,50,000 @ 12% as GST by cheque.
30 Exchanged our Furniture of ₹ 30,000 against a Motor car of the same value for business.
Journalise the following transactions in the books of Anand General Merchants.
2019 April
1 Mr. Anand started the business with cash of ₹ 60,000.
5 Purchased goods for cash ₹ 30,000.
7 Sold goods of ₹ 10,000 to Suresh.
10 Purchased Furniture from Mr. Govind on credit ₹ 30,000.
15 Paid for Rent ₹ 3000 and paid by debit card.
21 Purchased goods from Urmila on credit ₹ 70,000.
27 Paid for Transport ₹ 1,000 to United Transport.
30 Paid to Urmila ₹ 20,000 on behalf of Sharmila.
Journalise the following transactions in the books of Anand General Merchants.
|
2019 April |
|
| 1 | Mr. Anand started the business with cash ₹ 60,000. |
| 5 | Purchased goods for cash ₹ 30,000. |
| 7 | Sold goods of ₹ 10,000 to Suresh. |
| 10 | Purchased Furniture from Mr. Govind on credit ₹ 30,000. |
| 15 | Paid for Rent ₹ 3000 and paid by debit card. |
| 21 | Purchased goods from Urmila on credit ₹ 70,000. |
| 27 | Paid for Transport ₹ 1,000 to United Transport. |
| 30 | Paid to Urmila ₹ 20,000 on behalf of Sharmila. |
Journalise the following transactions in the books of Anand General Merchants.
| 2019 May |
|
| 1 | Mr. Anand started business with cash ₹ 60,000. |
| 5 | Purchased goods for cash ₹ 30,000. |
| 7 | Sold goods of ₹ 10,000 to Suresh. |
| 10 | Purchased Furniture from Mr. Govind on credit ₹ 30,000. |
| 15 | Paid for Rent ₹ 3000 and paid by debit card. |
| 21 | Purchased goods from Urmila on credit ₹ 70,000. |
| 27 | Paid for Transport ₹ 1,000 to United Transport. |
| 30 | Paid to Urmila ₹ 20,000 on behalf of Sharmila. |
