InterviewSolution
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InterviewSolution
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purchased goods of the list price of 160000 from razaq khan less 10% trade discount and 5% cash discount and paid 40% by cheque and 2.5 % CGST and SGST |
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Answer» From the QUESTION above, I ASSUME the invoice EXTRACT to be as given below.Goods…………………………………………1,60,000Less: Trade Discount @10%..…...........16,000Balance…………………………………..…..1,44,000Add: Taxes @ 2.5%..........……....................3,600Total………………………………………...…1,47,600Less: Cash Discount @ 5%..….................7,380Balance……………………………………...1,40,220Journal Entry 1 (On purchase)Raw Materials A/c ……….Dr …….1,44,000Input Tax A/c…………..…..Dr…………...3,600To Razaq KHAN’s A/c…………………………………………..1,47,600Journal Entry 2 (For adjusting cash discount)Razaq Khan’s A/c ………..Dr…….…...7,380To Cash Discount Received A/c……………………………..7,380Journal Entry 3 (On payment of the amount)Razaq Khan’s A/c………...Dr………56,088To Bank A/c……………………………………………….……… 56,088(40% of 1,40,220 paid by cheque)For ease of understanding, I have presumed INPUT TAX (both central and state) at a combined 2.5%. If it is 2.5% + 2.5%, then the amount CHANGES without affecting other narrative details.okMark me as brainlist..... |
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