Question
Rectify the following entries assuming that the narration in each case is correct:
✓
Answer
*Payment of brokerage will be included in cost of the building as it is incurred at time of purchase of building.Working Notes:
WN 1: Calculation of amount of goods sold.
| Cost | = | 10,000 |
| Less: Trade Discount (10% on 10,000) | = | 1,000 |
| = | $\overline{9,000}$ | |
| Less: Cash Discount (3% on 9,000) | = | 270 |
| Sale Price | = | $\overline{8,730}$ |
25 Paise per rupee received from Naresh = 10,000
$\therefore$ 75 paise per rupee not received from Naresh $=\frac{10,000}{25}\times75=30,000$
Total amount due from Naresh = ₹ 40,000 (10,000 + 30,000)
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