Following transactions are given: Goods sold for cash Rs.50,000 and allowed discount Rs.500. Goods purchased from Mr. Khadka for Rs.25,000. Cash paid to Mr. Khadka Rs.23,000 in full settlement of…

i) Journal Entries

1. Goods sold for cash Rs. 50,000 and allowed discount Rs. 500

   Cash A/c       Dr. 50,000
   Discount Allowed A/c   Dr. 500
   To Sales A/c           49,500
   

Explanation:

• Cash received from sales is debited.
• Discount allowed to the customer is debited (as an expense).
• Sales revenue is credited.

2. Goods purchased from Mr. Khadka for Rs. 25,000

   Purchases A/c    Dr. 25,000
   To Khadka's A/c       25,000
   

   Explanation:

   • Purchases are debited (expense).
   • Khadka’s account is credited (liability).

3. Cash paid to Mr. Khadka Rs. 23,000 in full settlement of his account

   Khadka's A/c     Dr. 25,000
   Discount Received A/c   Dr. 2,000
   To Cash A/c           23,000
   

   Explanation:

   • Khadka’s account is debited (to close the liability).
   • Discount received (Rs. 2,000) is debited (as income).
   • Cash is credited (payment made).

4. Salary paid Rs. 10,000

   Salary A/c       Dr. 10,000
   To Cash A/c           10,000
   

   Explanation:

   • Salary expense is debited.
   • Cash is credited (payment made).

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ii) Khadka’s Account

{
  "type": "t-account",
  "title": "Khadka's Account",
  "dr": [
    ["To Cash A/c", 23000],
    ["To Discount Received A/c", 2000]
  ],
  "cr": [
    ["By Purchases A/c", 25000]
  ],
  "balance": false,
  "caption": "Khadka's Account (No balance remaining)"
}

Explanation:

• Credit Side (Liability): Rs. 25,000 (due to purchases).
• Debit Side (Settlement):
  • Rs. 23,000 (cash paid).
  • Rs. 2,000 (discount received).
• Final Balance: Rs. 0 (fully settled).

Note: Khadka’s account is closed as the payment of Rs. 23,000 + Rs. 2,000 discount equals the original Rs. 25,000 liability.