Journalise the following transactions in the books of Gurman of Delhi:
1). Sold goods to Krishna of Delhi at the list price 20,000 less trade discount 10% add CGST and SGST @ 9% each., and allowed cash discount 5%. He paid the amount immediately.
2). Supplied goods costing * 6,000 to Mohan of Kolkata issued invoice at 10% above cost less 5% trade discount plus IGST @ 18%.
3). Goods valued at * 2,500 distributed from stock as samples, as part of an advertising campaign. These goods were purchased paying CGST and SGST @ 9% each.
4). Sold goods costing 1,00,000 to Anil of Delhi at a profit of 20% on sales less 20% Trade Discount plus CGST and SGST @ 9% each.
1). Sold goods to Krishna of Delhi at the list price 20,000 less trade discount 10% add CGST and SGST @ 9% each., and allowed cash discount 5%. He paid the amount immediately.
2). Supplied goods costing * 6,000 to Mohan of Kolkata issued invoice at 10% above cost less 5% trade discount plus IGST @ 18%.
3). Goods valued at * 2,500 distributed from stock as samples, as part of an advertising campaign. These goods were purchased paying CGST and SGST @ 9% each.
4). Sold goods costing 1,00,000 to Anil of Delhi at a profit of 20% on sales less 20% Trade Discount plus CGST and SGST @ 9% each.
Answers & Comments
Answer:
Let's journalize each of the transactions for Gurman of Delhi:
1) Sold goods to Krishna of Delhi:
- Debit: Accounts Receivable (Krishna) - 18,000 (20,000 - 10% Trade Discount)
- Credit: Sales - 18,000
- Debit: CGST Payable - 810 (9% of 18,000)
- Debit: SGST Payable - 810 (9% of 18,000)
- Credit: Accounts Receivable (Krishna) - 17,100 (18,000 - 5% Cash Discount)
2) Supplied goods to Mohan of Kolkata:
- Debit: Accounts Receivable (Mohan) - 6,300 (6,000 + 10% above cost)
- Credit: Sales - 6,300
- Credit: IGST Payable - 1,134 (18% of 6,300)
- Debit: Cost of Goods Sold - 6,000
- Credit: Inventory - 6,000
3) Distributed goods as samples:
- Debit: Advertising Expense - 2,250 (2,500 - 9% CGST - 9% SGST)
- Credit: Inventory - 2,500
- Credit: CGST Payable - 225 (9% of 2,500)
- Credit: SGST Payable - 225 (9% of 2,500)
4) Sold goods to Anil of Delhi:
- Debit: Accounts Receivable (Anil) - 84,000 (100,000 - 20% Trade Discount)
- Credit: Sales - 84,000
- Debit: CGST Payable - 3,780 (9% of 84,000)
- Debit: SGST Payable - 3,780 (9% of 84,000)
- Debit: Cost of Goods Sold - 70,000 (Cost of 100,000 - 20% profit)
- Credit: Inventory - 70,000
These journal entries reflect the transactions for Gurman of Delhi in accordance with the given details. Please note that accounting entries may vary based on specific accounting principles or regulations in your jurisdiction. It's advisable to consult with an accountant or tax professional for precise guidance.