ent A/c will be debited by 3,50,000. Q.23. Journalise the following tr

1.	ent A/c will be debited by 3,50,000. Q.23. Journalise the following transactions in the books of Kanishk Traders : (1) Sold goods costing 31,20,000 to Charu at a profit of 33% on cost less 15% Trade Discount. (ii) Sold goods Costing 80,000 to Arun against cheque at a profit of 25% on cost less 15% Trade Discount. (iii) Paid by Cheque 38,400 as insurance premium for a period of 12 months starting 1st August 2016. Financial year closes on 31st March every year. [Ans. Total 2,32,200]
Answer» Answer: This information looks superfluous 1. ent A/c will be debited by 3,50,000. 2. Why Answer 2,32,200 Hence ignored. Explanation: 1. Charu A/c DR 35,27,160.00 To sales A/c 35,27,160.00 (Being Sold goods costing 31,20,000 to Charu at a profit of 33% on cost less 15% Trade Discount) 3120000133/10085/100 Trade discount is only recorded ii. Bank A/c Dr 85,000.00 To Sales A/c 85000.00 (being Sold goods Costing 80,000 to Arun against CHEQUE at a profit of 25% on cost less 15% Trade Discount) 80000125/10085/100= Trade discount is only recorded iii. Insurance Premium A/c Dr 25,600.00 Prepaid Expenses A/c Dr 12,800.00 To Bank A/c 38400.00 (Being Paid by Cheque 38,400 as insurance premium for a period of 12 months starting 1ST August 2016, 8 months expenses for this YEAR )

ent A/c will be debited by 3,50,000. Q.23. Journalise the following transactions in the books of Kanishk Traders : (1) Sold goods costing 31,20,000 to Charu at a profit of 33% on cost less 15% Trade Discount. (ii) Sold goods Costing 80,000 to Arun against cheque at a profit of 25% on cost less 15% Trade Discount. (iii) Paid by Cheque 38,400 as insurance premium for a period of 12 months starting 1st August 2016. Financial year closes on 31st March every year. [Ans. Total 2,32,200]

Answer»

Answer:

This information looks superfluous

1. ent A/c will be debited by 3,50,000.

2. Why Answer 2,32,200

Hence ignored.

Explanation:

1. Charu A/c DR 35,27,160.00

To sales A/c 35,27,160.00

(Being Sold goods costing 31,20,000 to Charu at a profit of 33% on cost less 15% Trade Discount)

3120000*133/100*85/100

Trade discount is only recorded

ii. Bank A/c Dr 85,000.00

To Sales A/c 85000.00

(being Sold goods Costing 80,000 to Arun against CHEQUE at a profit of 25% on cost less 15% Trade Discount)

80000*125/100*85/100=

Trade discount is only recorded

iii. Insurance Premium A/c Dr 25,600.00

Prepaid Expenses A/c Dr 12,800.00

To Bank A/c 38400.00

(Being Paid by Cheque 38,400 as insurance premium for a period of 12 months starting 1ST August 2016, 8 months expenses for this YEAR )