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Sold goods to Kamal Rs. 15,000 on credit and paid carriage behalf of Kamal Rs. 2,000.

Goods returned by Kamal Rs. 2,000.
Kamal settled his account and allowed him 10% discount.
Required: Journal entries

User Gzorg
by
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1 Answer

7 votes

Final answer:

Journal entries have been provided to record transactions involving sales on credit, carriage payment, goods return, and settlement with a discount for a transaction with Kamal, utilizing the double-entry bookkeeping system.

Step-by-step explanation:

The student has asked for journal entries that reflect a series of transactions involving sales on credit, carriage payment, returns, and settlement with a discount. To record these transactions, we will use the double-entry bookkeeping method which involves making at least two entries for every transaction: a debit and a credit to maintain the accounting equation.

Journal Entries:

  1. Sold goods to Kamal on credit

    Accounts Receivable Dr 15,000

    Sales Cr 15,000

  2. Paid carriage on behalf of Kamal

    Carriage Expenses Dr 2,000

    Accounts Payable/Cash Cr 2,000

  3. Goods returned by Kamal

    Sales Returns Dr 2,000

    Accounts Receivable Cr 2,000

  4. Kamal settled his account with discount

    Accounts Receivable Dr 13,000

    Discount Allowed Dr 1,300

    Cash (or Bank) Cr 11,700

Note that the settlement entry assumes that the total receivable was decreased by the return (15,000 - 2,000 = 13,000), and the 10% discount was calculated on the adjusted receivable amount, resulting in the 1,300 discount.

User Dmitry F
by
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