On goods purchases of Rs.2,00,000 got trade discount of
20,000 from supplier, and the amounts paid to supplier is
1,00,000 in cash and RS.1,00,000 in check on the same day,
what would be the general ledger entry ?
Answer Posted / govardhan prasad.g.
Purchases A/c DR 2,00,000
TO CASH A/C 1,00,000
TO BANK A/C 1,00,000
For this transaction we are considering trade disc of
20,000 from suppliers,bec trade disc is not enteried in
Trading and P&L account.(i.e., total value of goods is
2,20,000 in that trade disc is 20,000 given by supplier and
remaining 2,00,000 given by the purchaser.)
Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
What is an operative accounts?
Write about the media role in daily life
What is purchase returns accounting
What is the difference between a provisions and reserves?
How do we calculate the cost of investment?
If the company acquires equipment prior to incorporation what are the accounting entries?
adjustment entry showing in tally such as outstanding salary prepaid salary etc.
Explain me what is assets minus liabilities?
Why company issue shares at discount as its a loss ?
what is capital reserve
correction of sundry creotors
RPC Ltd. follows the written down value method of depreciating machinery year after year due to (a) Comparability. (b) Convenience. (c) Consistency. (d) All of the above
What are the different branches of accounting?
In the absence of any provision in the partnership agreement, profits and losses are shared (a) In the ratio of capitals. (b) Equally. (c) In the ratio of loans given by them to the partnership firm. (d) None of the above.
what is the meaning of written-off as goodwill written-off