Question

i. Sold goods on credit to Kamal Rs. 15,000 and paid carriage on behalf of KamalRs. 2.000ii. Goods purchased from Hari Rs. 10,000iii. Goods Rs. 2,000 returned by Kamal.iv. Kamal settled his account and allowed him 10% discount.Required: (a) Journal Entries (b) Kamal's Account (2+2)​

Answer 1

The journal entries for the transaction are as follows: Accounts Receivable - Kamal (DR) and Sales (CR), Carriage (DR) and Accounts Payable - Kamal (CR), Purchases (DR) and Accounts Payable - Hari (CR), and so on. Kamal's account will show the debits and credits for each transaction, including Sales (DR) and Accounts Receivable - Kamal (CR), Carriage (DR) and Accounts Payable - Kamal (CR), and so on.

Step-by-step explanation:

(a) Journal Entries:

1. Debit: Accounts Receivable – Kamal, Credit: Sales
2. Debit: Carriage, Credit: Accounts Payable – Kamal
3. Debit: Purchases, Credit: Accounts Payable – Hari
4. Debit: Accounts Receivable – Kamal, Credit: Sales Returns
5. Debit: Accounts Receivable – Kamal, Credit: Cash

(b) Kamal's Account:

1. Debit: Sales, Credit: Accounts Receivable – Kamal
2. Debit: Carriage, Credit: Accounts Payable – Kamal
3. Debit: Accounts Payable – Hari, Credit: Purchases
4. Debit: Sales Returns, Credit: Accounts Receivable – Kamal
5. Debit: Cash, Credit: Accounts Receivable – Kamal
6. Debit: Accounts Receivable – Kamal, Credit: Discount Allowed