Rahul sold 100 Cricket Bats to V. Sports @ Rs. 5,000 each less 25% Trade Discount plus IGST @ 12% and 2% Cash Discount if V. Sports paid the amount in 14 days of sale. V. Sports paid the amount within 14 days. What will be the amount that Rahul should creditto Sales Account?

Rahul sold 100 Cricket Bats to V. Sports @ Rs. 5,000 each less 25% Tra

1.	Rahul sold 100 Cricket Bats to V. Sports @ Rs. 5,000 each less 25% Trade Discount plus IGST @ 12% and 2% Cash Discount if V. Sports paid the amount in 14 days of sale. V. Sports paid the amount within 14 days. What will be the amount that Rahul should creditto Sales Account?
Answer» SOLUTION :RAHUL will credit Rs. 3,75,000 to Sales Account, i.e., the amount of Gross Sales LESS Trade DISCOUNT. Cash Discount allowed is an expense and is debited to Discount Allowed Account.

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Rahul sold 100 Cricket Bats to V. Sports @ Rs. 5,000 each less 25% Trade Discount plus IGST @ 12% and 2% Cash Discount if V. Sports paid the amount in 14 days of sale. V. Sports paid the amount within 14 days. What will be the amount that Rahul should creditto Sales Account?

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