Prepare Aparna's account in books of Suparna

2019 Jan. 

1. Balance due from Aparna Rs.60,000. 
4. Sold goods to Aparna Rs.15,000 at 10% Trade Discount. 
7. Goods returned by Aparna Rs.1,500 {gross} 
11. Received crossed cheque from Aparna Rs.50,000. 
17. Invoiced goods to Aparna Rs.12,000. 
25. Sold goods to Aparna in cash Rs.6,000. 
30. Received cash from Aparna Rs.33,000 in full settlement of her account 

Solution: 

Aparna's Account 

Date	Particulars	L.F	Amt	Date	Particulars	L.F	Amt
2019 Jan. 1	To Balance b/d		60,000	2019 Jan. 7	By Sales return A/c		1,350
4	To Sales A/c		13,500	11	By Bank A/c		50,000
17	To Sales A/c		12,000	30	By Cash A/c		33,000
				31	By Discount allowed A/c		1,150
			85,500				85,500

 

Explanatory Notes: 

1) Balance due from Aparna Rs.60,000: 

 In the last month of Aparna Ledger Account as balance Rs.60,000 which is not received therefore it has written as balance due and it carried from December 31st to the current month which is First of January. It will be on debit side because the Balance is due means Suparna must take money from Aparna. So, in the month of December Balance is stated on Credit side and when it brought down in the current month it will be stated on debit side.      

 

4) Sold goods to Aparna Rs.15,000 at 10% Trade Discount: 

Goods are sold to Aparna at Rs.15,000 and allowed her @10% Trade Discount. Whenever the cash received or comes in as an income it will always be placed on Debit side in the Ledger Account Of. Trade Discount means it is an allowance or concession given by the seller of goods. This discount is allowed at the time of purchase/ Sales of goods on cash as well as credit transactions. Always remember that the Trade Discount is not recorded in the books of accounts.     

 

7) Goods returned by Aparna Rs.1,500 {Gross}. 

The goods are sold to Aparna on the 4th of January. She returned some of the goods to Suparna. The entry will be Sales return Account because sold goods are return it will state on the Credit side because when Goods Sold, we post sales account on debit side hence, when sold goods are return it will state on Credit Side. Here next to amount Gross is written it means the return goods are on gross amount. Which means calculate trade Discount on the return goods also. See the Calculation Part below the explanatory notes. You will understand more clearly. 

 

11) Received crossed cheque from Aparna Rs.50,000. 

Received Crossed Cheque from Aparna means the amount which is not paid by Arpana is now paid therefore in the ledger of Arpana account Bank account will be stated on credit side because Suparna received cash from Aparna So, in Suparna's bank 50,000 is credited that's why in Aparna account bank is credited. 

 

17) Invoiced goods to Aparna Rs.12,000. 

Invoiced goods mean goods are sold to Aparna therefore sales Account is debited to debit side in the ledger of Aparna. 

 

25) Sold goods to Aparna in cash Rs.6,000. 

Here, goods are sold to Aparna in cash So, the journal entry is: 

On Debit side - Cash A/c 

On Credit Side - Sales A/c 

This transaction is not a credit transaction therefore in the Ledger of Aparna No Entry.  

As you can see in the Journal Entry also. 

 

 30) Received cash from Aparna Rs.33,000 in full settlement of her account. 

This Transaction means Aparna as paid is due amount in her full settlement of her account But, she as paid only 33,000 to Suparna. The actual amount she must pay is Rs.34,150. The remaining amount is written as Discount allowed and closed the account of Aparna. 

  

Calculation: 

4) 15,000 at @10% Trade Discount. 

T.D. - 15,000*10/100 = 13,500 

T.D. - 13,500 

 

7) 1,500 {Gross} 

- 1,500*10/100 = 1,350 

Prepare Aparna's account in books of suparna.