hello how are you all tell me what have you brought today i
have brought two types of general entries today we are
going to practice a lot with you all ok sir so everyone
lets have a go without any delay lets move ahead and first
you will write today's question it can be one or two or
three lets see how far the car goes write example number
one for the day example number one for the day
give general entries in the books of in the books of rp
sync for the following transactions give general entries in
the books of rp sync for the following transactions number
one one april one april two thousand twenty three goods
purchase goods purchase goods purchase for cash rupees
rupees ninety thousand goods purchase goods purchase for
cash
number two
four april two thousand twenty three
goods sold to vikas
goods sold to vikas goods sold to vikas rupees twenty
thousand rupees twenty thousand number three
Saath April 2023.
Defective goods returned by Vikas.
Defective goods returned by Vikas
Rs. 4000. 9th April 2023. Received cash from Vikas.
Rs. 15,500. Discount allowed to Vikas Rs. 500.
10th April 2023. Chandresh sold goods to us. Rs. 18,000.
11th April 2023. Pradeep purchased goods from us. Rs.
13,000.
12th April 2023. Insurance premium paid by cheque. Rs. 800.
13th April 2023. Pradeep purchased goods from us. Rs. 1,000.
14th April 2023. Pradeep purchased goods from us. Rs. 1,000.
15th April 2023. Pradeep purchased goods from us. Rs. 1,000.
16th April 2023. Pradeep purchased goods from us. Rs. 1,000.
17th April 2023. Pradeep purchased goods from us. Rs. 700.
18th April 2023. Pradeep purchased goods from us. Rs.
10,000.
19th April 2023. Pradeep purchased goods from us. Rs.
10,000.
20th April 2023. Pradeep purchased goods from us. Rs. 7,000.
21st April 2023. Pradeep purchased goods from us. Rs. 7,000.
22nd April 2023. Pradeep purchased goods from us. Rs. 7,000.
And salaries paid 8500
Write this and you will get 2 more points
Write it fast
Write it on 20th April
Received interest
450 Rupees
And on 25th April last received commission
2000 Rupees
Received commission 2000 Rupees
Note it as soon as possible
Total we have 10.15 5.15 Doubt Doubt These 15 events affect
the financial position of the business.
These are all transactions.
We have to do their journal entry.
This account debit to this account.
Like this.
Ok Sir.
You know the rules.
We are practicing with you today.
Let's go.
First is goods purchased for cash.
90,000 rupees.
Goods purchased for cash.
90,000 rupees.
Let's go to number 1.
Now friends, we will not take many steps.
Listen to me.
If we keep going stepwise, it will take a lot of time.
Now we have to think by ourselves.
Keep thinking in your mind and keep passing the entry.
And that date, particular amount.
We will not write such headings much.
And we will not write the narration either.
We will only pay attention to the entry.
Date.
We will write like that.
We will not put the heading of the date on top.
We will not write the heading of the particular on top.
We will write directly.
We will pay less attention to the formatting and more to
the talk.
You know what narration is.
You have to write the same thing that you did in the entry.
So we will not do narration either.
We will save time.
Ok Sir.
Number 1 point.
Goods purchased for cash.
What happened?
And goods means the thing that is going to be sold later.
So the goods came to us and the money went.
The first aspect is that the goods came.
The second aspect is that the money went.
Now I have told you that whenever you buy goods.
Goods means something that you are going to sell.
So you will debit the purchase account.
Buying goods is an expense.
When the expense increases, then it is debited.
That's why we have debited this expense called purchase.
By name.
By the name of purchase.
By the name of purchase, we have debited the expense of
buying these goods.
How much is the amount brother?
The amount will have to be seen again and again.
90,000 rupees.
And the second aspect.
My cash, which is an asset, is a property.
If it goes, it will be reduced.
And when the asset is reduced, then friends you know what
we do?
Credit.
That's why we credit cash.
To cash account.
Purchase account.
Debit to cash account.
90,000.
This is the entry.
This is the first entry we have.
Let's move on to the second entry.
The second transaction is that we sold the goods we bought
to Vikas for 20,000 rupees.
And friends, please pay attention.
Friends, please pay attention.
It is not written anywhere that Vikas has given us money.
Or Vikas has given us a cheque.
We have not sold goods, we have sold loans.
This indicates that goods have been sold on loan.
Okay sir.
What will happen if goods are sold on loan?
Sir, one of our goods will go away from us.
Friends, whenever you buy goods, you will debit an account
called purchase.
And my dear friends.
My dear friends.
How did you debit the purchase?
As an expense.
Once the expense is done, the debit is done.
Fine.
Won't you earn if you sell?
Yes sir.
What is to be sold?
There is income, sir.
Absolutely right.
So sales, there is income.
What do we do when income increases?
We do credit.
That is why we will credit the sales account.
That is why we will credit the sales account with 20,000
rupees.
We will credit the sales account with 20,000 rupees.
Whenever you buy goods, there is an expense, then it will
be debited in the name of purchase account. Whenever you
sell goods, there is an income, then it will be credited in
the name of sales account.
But sir, there is still a question in our mind.
I said, which one? Sir, tell me one thing.
Sir, this money has not come, we have sold the loan, then
how did the income happen?
Who taught you that income is only when money comes? I am
teaching you now, I did not get his money, but still this
is my income.
If you have not got it, you will get it. There is a
principle of accounts, there is a concept, remember the
accrual concept, you will be taught in the chapter of
concepts.
He says that he has not got the money, no problem, you have
fulfilled your responsibility, you have sold the goods from
your side, you have delivered it to the other person.
If you have not got it today, you will get it tomorrow,
there is no problem, you have to have income and receive
that income. These are two different things.
In accounting, the accrual concept says that record the
income as soon as it happens, record it after the sale,
assume your income.
If you get it tomorrow, then we will separate the entry of
the money.
And anyway, friends, you tell me, the sale is happening
today, the money is getting tomorrow, so both things should
be recorded.
The day the goods were sold, that entry should also be
there, and when the money is getting, that entry should
also be there.
We should have both the entries.
So we have credited the sales account, we have 20,000
rupees.
What will be the debit?
An asset will be born, an asset will be born in the name of
development.
We will debit development, development has become our asset.
Why sir?
Because he will give us money.
Whatever that thing, that person, that person, that thing
that gives us money is our asset.
Directly or indirectly.
Development will give us 20,000 directly after some time.
So development is our asset.
Development has become our property in a way.
We want development to never happen.
Development should be good, there should be no cough and
cold.
Forget about Covid.
So we will take care of it, just like our property.
Why? 20,000 will come from it.
That's why it is our asset.
And whenever the asset is made, it increases, then we debit
it.
That's why we made the development account.
Debit.
Yes sir.
The third point is defective goods returned by development.
Now friends, look very carefully.
How much money did we sell to development?
How much money did we give the goods?
Give him 20,000.
He took it home and he opened the goods and saw it.
Out of that, he got 2,000 rupees, sorry, 4,000 rupees of
goods, which is defective.
Because the goods of 4,000 were defective, he gave it back
to us.
He says, man, this is not a good thing.
I went home and got defective.
We had also told him, we also tell our customers that if
the goods are defective, then return it.
Our goods are of the same type.
Where we bought it from, we will return it back.
There is no problem in that.
Okay sir.
This is a matter of customer satisfaction.
This is a matter of customer service.
Yes sir.
Okay.
No problem with this.
So brother, what will happen?
I give you a very simple rule.
Very simple rule.
Tension is over.
If there is an entry to sell goods to development,
development account, debit to sale account.
20,000, 20,000.
Out of this, he gave back the goods of 4,000.
So reverse this entry.
Reverse this entry.
Debit the sales which has been credited.
And credit the development which has been debited above.
Make the development account debit to sales account, sales
account debit to development account.
From 4,000 rupees to 4,000 rupees.
Make the development account debit to sales, sales account
debit to development.
This is it.
So sir, what we purchased above.
If anything defective comes out of it, can we return it?
Yes.
So we will reverse that entry too.
It is the same thing, nothing else.
Sir, we are able to see one thing.
You have left a little gap in the sales account here.
Sir, why did you do this?
Let's go by writing one more word.
RETURN R E T U R N
Returned Returned Sales Return Account Debit to
Vikas Account 4th Point
Received Cash from Vikas
Vikas is giving 1500 Rupees
Discount of 500 Rupees
Friends Listen Carefully
In 2nd Point
We sold Vikas for 20,000 Rupees
He didn't like 4000 Rupees
We asked him for 16,000 Rupees
He said take 15,500 Rupees
And clear the Result
We have to give discount at the time of payment
He knows that his eyes are on the notes
His heart is weak
If I don't pay today, it will take another week
He is ready to give discount
He took a discount of 500 Rupees
And paid 15,500 Rupees
How will this happen now?
Friends Listen
Cash is coming to us
Cash is coming to us 15,500 Rupees
Cash is coming
Asset named Vikas will end
Asset named Vikas was going to give us 20,000 Rupees
Reduced from 4000 Rupees
Ultimately, he was going to give us 16,000 Rupees
Asset named Vikas was worth 16,000 Rupees
Now he is clearing our account
So, the asset named Vikas will end
Because he fulfilled his responsibility
And what does asset mean?
Asset named Vikas will end at 16,000 Rupees
He will give 15,500 Rupees
He will give 16,000 Rupees
He will give 15,500 Rupees
He will give 16,000 Rupees
He will give upon his request
Loss These are three incidents 16000 asset is ending
In return we are getting 1500
And 500 is getting loss
In return we are getting 1500
And 500 is getting loss
Yes sir ok no problem
How to record
One asset is ending
Whenever asset is ending
We credit it
We will credit Vikas
To Vikas account 16000 Ok sir
Cash Asset Asset Debit Asset Debit And 500 Debit all
expenses and losses
Debit expenses
Debit losses
Debit Discount allowed
Discount allowed
Account debit 500
Friends What is the difference between expense and loss
Expense means
You spent something and got something in return
Like purchase
You got goods
Like rent
You will get service in return
You will get place to use
Like golgappa
Loss means
Did you get anything in return of 500
No You reduced 500 from your 16000
If in return of 500
I am giving 15500 of 16000
And in return of 500 I am giving something else
Then it becomes expense
But you didn't get anything
It is loss
That's why we debit it
Debit all expenses and losses
Expense and loss are different
But difference should be known
What is difference in expense and loss
And Any general entry is completed
When both debit and credit are equal
In first entry, debit was 90
Credit was 90
In second entry, debit was 20
Credit was 20
In third entry, debit was 4000
Credit was 4000
But in this entry, debit was 15500
And credit was 16000 500 was less in debit
That is loss
Debit total is 15500
Debit total is 16000
Credit total is 16000
Yes sir
Such entries
Our first entry
I am writing it
With this color pen
First entry
Is called simple entry
Second entry
Is also called simple entry
Third entry
Is also called simple entry
And fourth entry
Is called
COMPOUND ENTRIES
Sir, what is the difference
First entry
Second entry
Third entry
First entry
Purchase debit
Sales credit
Sales return debit
But in this entry
More than one accounts are debited
Credit may be same
But it is different
COMPOUND ENTRIES
More than one accounts are debited
Or if it is like this
More than one accounts are credited
Then also it is called COMPOUND ENTRIES
Two accounts are debited
Two accounts are credited
Then also it is called COMPOUND ENTRIES
What is the rule
Write below
Write below this entry
COMPOUND ENTRIES
Are those entries
COMPOUND JOURNAL ENTRIES
Are those
JOURNAL ENTRIES
COMPOUND JOURNAL ENTRIES
Are those
JOURNAL ENTRIES
In which
More than one account
Is either debited
Or
More than one account
Is credited
Or both
Write Write Fast
COMPOUND JOURNAL ENTRIES
Are those
In which
Is credited
Or both
COMPOUND ENTRIES
COMPOUND JOURNAL ENTRIES
that if you are taking 2 or more than 2 debits even if you
are taking 2 or more than 2 Credits then also Compound Entry
and this is the same this is Simple Rule
If you are replying with a single debit & credit then that
is a Simple Entry
If you are replying with a single credit & debit then that
is a Simple Entry
then any combination with one or two is your Compound Entry
compound entry will come in this example, so it is
important for you to know about compound entry.
In this example, a lot of compound entries will come to us,
like I try to tell you, this one will come to us, when we
see, we will go and this 13 will also become a compound
entry.
We will have a compound entry of 13, okay, okay, okay, and
in a compound entry, I can also show them separately, they
will only see when they reach them, okay, okay, okay.
Let's come to the fifth point.
What does the fifth point say?
Sir, how did your T-shirt change suddenly?
Aage aage dekhiye hota hai kya?
This happens sometimes, my friend.
Number 5.
Chandraesh sold goods to us for 18000.
Chandraesh has sold goods to whom?
To us. Us ka matlab hum ko.
Chandraesh has sold goods to us.
Who are we in this example?
We are the R.P. Singh.
Who remembers the 2007 T20 World Cup's dangerous bowler
from R.P.
He had won the match against South Africa with a very
important wicket.
If you remember, that's great.
If you don't remember, watch the highlight.
2007 T20 World Cup, R.P. Singh great bowling performance.
So, we have been sold goods to R.P. Singh by Chandraesh.
In this case, we can say that Chandraesh is the seller and
R.P. Singh is the buyer.
Who are we in this example?
Buyer.
He is selling and we are buying.
So, this is nothing but a purchase entry.
This is nothing but a purchase entry.
You have to pay 18000.
Point number 5.
Purchase account debit to Chandraesh account.
Now, you have understood the entry of purchase.
Purchase is an expense.
Buying goods is an expense.
Whenever we buy goods, the expense will increase, so we
will debit.
What will we write the name?
Purchase.
And if you have bought a loan, then the name of that person
will come.
If you had bought cash, then cash or bank would have come.
If you had bought cash from cash payment, then cash.
If you had bought from bank, then bank.
Sir, where is it written that you have bought a loan?
Brother, only the name is written.
This means that it is a loan.
If cash payment had been done, then it would have been
written that cash payment has been done.
Cash or bank.
Purchase account debit to Chandraesh account.
18000.
Yes, sir.
Next point.
Pradeep purchased goods from us.
Pradeep has bought goods from us.
Pradeep purchased goods from us.
Means Pradeep is a buyer.
We are sellers.
We are being sold by RP Singh.
Pradeep.
And cash is not written anywhere.
Means a loan is being sold.
You know the entry of the loan sale very well.
If the sale has taken place, then your income will be
credited to the sales account.
To the sales account.
How much money? 13000 rupees.
13000 rupees.
And what will the debit do?
The one who has sold the loan, he is now your debtor.
He is now your asset.
He will give you money tomorrow.
So let's do the asset when the debit increases.
That's why the debtor named Pradeep will be debited.
Pradeep account debit 13000 to sales account 13000.
This is cool.
Next.
Insurance premium paid by cheque 800 rupees.
Insurance premium is an expense.
Whenever there will be an expense, it will be debited.
Yes.
So do the expense of insurance premium.
Debit.
Insurance premium account debit.
How much money? 800 rupees.
800 rupees.
And how are you paying for it?
Sir, we are paying from its cheque.
To the bank account.
Insurance premium account debit to the bank account.
800 rupees.
Insurance premium account debit to the bank.
You are not paying from the cheque.
That's why the bank came.
If you are doing it from cash, then cash comes.
Okay, sir.
What is next?
LIC premium of RP Singh paid by cheque.
Now listen carefully, friends.
Sir, you must be feeling.
Children, you must be feeling.
Sir, this is the same as the last entry.
Insurance premium to the bank was done in the last entry.
Insurance premium to the bank will be done in this too.
Insurance premium was being paid there too.
Insurance premium is being paid here too.
What is the difference?
Shall I tell you what the difference is?
Let me tell you what the difference is.
This insurance.
This is the insurance of the business.
It is not written anywhere.
Life insurance etc.
Means of any goods of the business.
Of theft.
All that insurance must have been done.
But what is written here.
That LIC premium word is written.
You know the meaning of LIC.
Life insurance has been done.
And whose life is it?
It does not belong to the business.
Business is not a winning thing.
Life belongs to the owner.
That is why the life insurance of RP Singh has been done.
Its premium.
This is the insurance premium of the owner's personal life.
This is not the expense of the business.
This is the insurance of the owner's personal life.
Why has he taken it?
So that his family is safe.
His family is safe.
His financial security is maintained.
That is why he has taken this LIC.
For home purpose.
But its payment.
By check means.
You have done it from the bank account of the business.
Its payment.
You have done it from the bank account of the business.
Sir, you have become a ghost.
I said okay.
Is this the case?
Take this.
I start showing you a little.
The light went on.
Wait a while.
I have come.
You have made a payment of this business.
Here.
From the bank account of the business.
The owner's personal expenses.
So whenever the owner's personal expenses.
Any payment.
For business.
Will be done.
Dear children.
So what will it become?
Drawings.
What do we call it?
Drawings.
Very very good answer.
The owner's personal expenses.
Whenever it will be paid by the business.
It is called a drawing.
It is called drawings.
To withdraw money from the business for personal purposes.
By the owner.
Is called drawings.
What is the entry of drawings?
Friends.
First see this.
Will the bank account be credited or not?
Just tell me this much.
Someone tell me this much.
What will be the credit?
I know this.
The bank account will be credited.
Because.
We have made a payment of 3500 rupees.
From the bank.
From the bank of the business.
The bank account will be debit.
And.
Remember the rule.
Whenever there is a drawing.
So what do we call it?
Debit.
Whenever drawings increase.
For personal use by the owner.
Money is taken from the business.
So we debit the drawings.
Look at your table.
Where it is written.
Income Expense Capital Drawings.
It is written there.
Drawings will increase.
If there are drawings, we will debit.
That's why we made the drawings account.
Debit.
To bank account.
3500.
Cool.
Next is what?
Next is coming.
One more compound entry.
Which I told you.
That one more compound entry.
Will come in front of you.
Paid cash to Chandresh.
And.
Discount received from him.
Paid cash to Chandresh.
And.
Discount received from him.
Chandresh.
How much did we buy from him? 18000 rupees.
Look at this.
We have also entered now.
Purchase account.
Debit to Chandresh account.
How much did we buy from Chandresh? 18000 rupees.
Sir, we bought things from Chandresh.
Very good.
Nice.
Cool stuff.
Very very good.
Here it is.
We paid him 17300.
And the account was clear.
We took 600 rupees from him.
Discount.
We paid 17300.
And took 700 rupees.
Discount.
Okay.
Means.
We are earning something.
Look friends.
When you did this entry.
So the money came.
15500.
You gave a discount.
And the asset named Vikas was over.
Here is the opposite.
Chandresh as a liability.
In your books.
On the 5th step.
18000 rupees.
We bought a loan from Chandresh.
So it became your liability.
Liability increases.
That's why we credit.
That's why we credited Chandresh.
Chandresh as a liability.
After being credited in the 5th point.
Is present in our books.
And today.
What are we doing in the 9th point?
Today in the 9th point.
We are going to make his payment.
So the liability will be over.
Now we will make the payment.
So the liability will not be over.
So did we make the payment?
Yes sir.
When we will make the payment.
Liability will be over.
Means liability will decrease.
Debt will decrease.
Worries will go away.
So tell me.
Looking at your chart.
That small table.
What do we do when the liability decreases?
Caught right.
Debit.
Caught right.
So we are Chandresh.
Liability which is now ending.
We will do that.
Debit.
Chandresh.
Account.
Debit.
Rs. 18000.
And you are paying from the bank.
Or are you paying with cash?
From where are you doing?
From cash.
So the cash account will be done.
Credit.
There is an asset called cash.
It will be less for you.
If the asset decreases.
Then we will do credit.
How much money?
Rs. 17300.
Sir, there is a problem.
Which one did I say?
Sir.
You told.
In general entries.
How much is the total debit?
The same should be the total credit.
But sir.
Here the total debit is Rs. 18000.
But the total credit is only Rs. 17300.
Credit of Rs. 700 more to do.
What will you do with the credit of Rs.
To Discount Received Account
Sir, what is this, what is this, what is this?
Oh, brother, the loan of Rs.
18,000 was paid in just Rs.
Aha, what fun to speak
The loan of Rs.
18,300, sorry, the loan of Rs.
18,000 was paid in just Rs.
Have you saved Rs.
700 or not?
Tell me honestly
Now he will ask for Rs.
700, isn't it that you are giving him Rs.
17,300 in return of Rs.
18,000 and saying that you will give him Rs.
700 later?
You said, brother, take Rs.
17,300, you are our friend and clear the account of FITOS,
bye bye
The account is being cleared, brother, in Rs.
So we have saved Rs.
700, we have saved Rs.
700 in the bargain
That income is your gain, income is your gain
And whenever there is income, it is credited
Whenever there is income, it is credited
See, from that small table, all your entries, all your
concepts are getting cleared
There is no problem
That's why we credited it, we have an income
Whenever the income increases, we will credit
So discount, received account, Rs.
700, very very good, cool
Next, 10th point
Bought goods from Rajesh
List price Rs.
At 20% trade discount
Now friends, you have to explain the difference between
trade discount and cash discount
I have to explain two things to you
One trade discount and one cash discount
Sir, how will you explain?
Let's go to the mall
Shall we go?
Yes sir, let's go
We had to buy jeans, let's go to the mall
Let's go, let's go, imagine
We went to the mall to buy jeans
We went inside, we parked the car or bike
Sir, we are going by metro, you put a token from the metro
and come to the mall
Idiots After that, we went inside
We climbed the stairs and reached the showroom
And we asked the shopkeeper to show us jeans of good brands
He showed us the best jeans
And the jeans we liked, they did not fit our budget
The jeans we liked, they did not fit our budget
Did not fit the budget
Those jeans are for Rs.
Our budget is a little less, not that much
Sir, jeans for Rs.
5000 is already a very high budget
If you become a professional, then jeans for Rs.
5000 will not be a big deal for you
As a student, it is high, I agree
But if you take a little Rs.
5000, then the calculation will be a little easier
That's why we are going with Rs.
Those jeans are for Rs.
5000, of a good brand
Good company, good clothes, good look
It is in the latest fashion trend, the bell-bottom is
running again
They are running in that, absolutely great
But as soon as we liked it, we look at the tag price
We all say this
First we say that the clothes are very good
And then after liking what we like, we look at the tag price
If it is in the budget, then we say that it is very good
If it is not in the budget, then we say that there is a
shortcoming in it, show another one
So we looked at the tag, it said Rs.
5000 on it
We liked the jeans, but as soon as we looked at the tag, we
were disappointed
As soon as we looked at the tag, we were disappointed that
we will not be able to buy it
Where is so much money?
If a class comes in Rs.
If the professional children are in CSC or CMA
In Rs.
5000, we are getting classes of an inter subject
Online, at this time, the recorded GDP is of a good teacher
So we spend that money on jeans
No, we will not be able to spend so much
As soon as our face was disappointed
Friend, the shopkeeper read us
The shopkeeper read the face
The shopkeeper was looking at the tag and got angry
In the meantime, there was a voice behind the shopkeeper
Don't worry, don't worry
It will not be of Rs.
5, it is going off
There is a 20% discount
It will be of Rs.
We thought that Rs.
4000 is less, it is Rs.
We will manage a little in Rs.
It was going above Rs.
1000 from the budget
We will see in Rs.
There is no problem
So friends, this is called a trade discount
This is called a trade discount
That's a different thing, the jeans were of Rs.
On it, the tag was deliberately put of Rs.
Then the shopkeeper said, there is one mark, take it in Rs.
To show, the price is being increased
To show that we are also giving you a discount
But still, we can't see the manufacturing cost
We have to listen to them
So he said, it will be Rs.
He is giving a discount of Rs.
1000 to all customers
He is giving a discount to increase his business
He is giving a discount according to his business scheme
He is giving a discount according to his trade
To increase the trade
Trade is called trade in English
He is giving a discount to increase the trade
That's why it is called a trade discount
What did the shopkeeper do?
The shopkeeper said, it was Rs.
Minus Rs.
1000, trade discount
And he gave you a bill of Rs.
He gave you a bill of Rs.
You said, pack it
He deducted the bill of Rs.
Rs. 4000, one jeans price
And he gave you that bill
And he is telling you to make a payment
Make a payment of Rs.
He said this to you
Have you seen the meme?
There is a meme on Instagram
When I go to buy something with my mother
The shopkeeper says
Rs. 7 crore
Like Amitabh Bachchan
And then
Like Totla Seth in Ferreira Ferry
My mother says, I will give you Rs.
40 lakh
I say, I will give you Rs.
40 lakh
And then
Like Ferreira Ferry, I will give you Rs.
The shopkeeper says, Rs.
7 crore
I say, Rs.
40 lakh
My mother says, how much?
Rs. 150
That meme
In the same way
You also have the skill in bargaining
You also know how to bargain well
You know
Even though he is saying Rs.
1000, he is giving Rs.
Still, he has added a good discount
When you make a payment
You ask for a discount
When you make a payment
You ask for a discount
You tell him
You said Rs.
4000 is fine
But now listen to me
We are paying you cash
There is another shop nearby
We are ready to give you a loan
But still we come to you
We are giving you cash
Give us a discount
You bargain with him
Take a discount of Rs.
And you pay him
Rs. 3700
The bill price was Rs.
You deducted Rs.
And made a payment of Rs.
The reduction of Rs.
This is called
Cash Discount
This is called
Cash Discount
You are making a payment
With Rs.
In return, you say
We are making a payment with Rs.
This is called
Cash Discount
This is called
Cash Discount
Trade Discount
Shopkeeper gives
Discount Shopkeeper gives
Discount To increase your business
To show
Shopkeeper gives
Discount Shopkeeper gives
Discount After deducting
Bill is made
After deducting
Bill is made
Rs. 4000
Cash payment
Cash Discount
Rs. 4000
Cash Discount
Trade Discount
Bill is made
Rupees 100 Rs
Rupees 100 Rs doinppy guten It is written on the tag price
The tag which has tag price
It is also called list price
On which MRP is printed
In that it is written 20% off
When bill is made
Then bill is made for 4000
Means trade discount
After minus in air
We make bill for 4000
And accounting starts from bill
That's why accounting starts from 4000
In any book of accounts
Trade discount will not be shown
Yes, we show this Rs. 300 cash discount in the accounts.
This is the same discount that you just recorded here.
When you gave a discount of Rs. 500, it was allowed while
receiving cash.
And when you got the discount while paying cash, the
discount was received at Rs. 700.
These are both cash discounts.
This discount is being allowed and received while paying
cash.
This is called a cash discount.
We show this in the books.
That's why we have shown it in the entry.
But this is the 10th number.
This is a trade discount.
It doesn't need to be debited or credited anywhere.
So what will we do, sir?
The list price was Rs. 10,000.
The shopkeeper said, forgive me Rs. 20,000.
And he made a bill of Rs. 8,000 for us.
So we will record the entry directly at Rs. 8,000.
We will not show the trade discount of Rs. 2,000.
That we got a trade discount of Rs. 2,000 and received Rs.
2,000.
We will not show this anywhere.
We will pass the entry with Rs. 8,000.
No need to show Rs. 10,000 or Rs. 2,000 anywhere.
Write Rs. 8,000 directly.
Neither you see it nor you.
Give it directly on the spider's web.
Is this a dialogue from a movie?
Yes, sir.
Okay, sir.
Sir, sir, sir.
We have to buy goods worth Rs. 8,000 from Rajesh.
Make a direct entry.
Purchase account debit to Rajesh.
Entry number 10.
Purchase account debit to Rajesh account.
Rs. 8,000.
There is a principle of accounts.
There is a principle.
Whose name is Full Disclosure Principle.
There is a principle of accounts.
Full Disclosure Principle.
What does Full Disclosure Principle say?
Full Disclosure Principle says
Tell everything in detail.
Tell everything.
When did it happen?
What happened?
How much happened?
How did it happen?
If there was goods worth Rs. 10,000.
There is a trade discount of Rs. 2,000 in it.
Then write everything and tell.
10 minus 2 is equal to Rs. 8,000.
Write everything and tell.
But when it comes to trade discount,
Then we will ignore that thing.
When it comes to trade discount,
Then we will ignore that thing.
How? We will pass the entry directly with Rs.
Purchase account debit to Rajesh account.
Rs. 8,000.
Yes Sir.
Okay.
Now come.
17th April.
Next day.
Now come.
17th April.
That means.
Next day.
What is happening?
Next day.
We are paying Rajesh.
Rs. 7,000.
And the account is FITUS.
We are paying Rajesh.
Rs. 7,000.
And the account is FITUS.
Okay.
Write a little here.
Pay to Rajesh.
In full settlement.
This is called FITUS.
FITUS.
In full settlement.
This should also be known.
After Rs. 7,000.
The account is FITUS.
In full settlement means.
Rs. 7,000 is given for the account.
Okay Sir.
If the word in full settlement is not written.
It will seem like this.
It was the same as Rs. 8,000.
And we have given Rs. 7,000.
Now Rs. 1,000 is left to be given.
It will seem like this.
But if the word in full settlement is written.
Then what will happen?
If the word in full settlement is written.
Means instead of 8.
Rs. 7 is given.
The account is FITUS.
Not to give Rs. 1,000.
We have taken a cash discount of Rs. 1,000.
So.
Right.
12th point.
Received cash from Pradeep.
How much money do we have to take from Pradeep?
We had sold Pradeep.
Now where is it?
Where is it?
Pradeep, Pradeep, Pradeep.
Sold for Rs. 13,000.
and what is written?
Received cash from Pradeep so how much he will agree? he
has given all the money if it was written above 12,000,
11,000 so we believe that he has not given all the money it
is written
Received cash from Pradeep so he must have given all if
question is silent, he must have given all ok sir so here
we have
13,000
13,000 which point is this? 12th point
13,000 rupees are coming cash is coming which is an asset
so asset will increase, cash will increase so we will debit
cash account debit 13,000 and the asset named Pradeep which
we had debited the asset named Pradeep which we had debited
now that asset will finish credit it and finish let it go
now it is going, it is finishing he has repaid his money so
Pradeep's account is clear cash account debit to Pradeep
13,000 this Pradeep's asset will finish next point payment
made for wages,
and salaries paid write in cash in cash write cash friends
3 expenses wages 1800 rupees advertisement expense 2200
rupees and salaries paid 8500 rupees total is 1800 2200 and
8500 total is 12500 how we have made payment? we have made
payment in cash
whenever we make payment in cash so what will happen our
cash will go asset named cash will decrease so whenever
cash will decrease we will credit write 2 cash account
12500 and what will be the debit these 3 expenses expenses,
wages, advertisement expense and salaries whenever expenses
are debited it is written there expenses will be debited so
1800, 2200 and 8500 we will debit these 3 expenses
expenses, wages, advertisement expense and salaries
this is also your compound entry because more than one
account is debited wages account debit advertisement
expenses account debit salaries account debit
salaries account debit 1800, 2200, 8500 1800 2200 8500
compound entry
this is one compound entry
and this is 9th one this is also one compound entry
and this is 4th one total 3 compound entries there are
total 3 compound entries yes sir next is received interest
450 and received commission 2000 write in cash if you want
you can add both i told you i will make compound of both
you are getting cash interest 450 and commission 2000 so
from 2450 asset named cash will increase so debit debit
cash account debit 2450 cash account debit 2450 yes sir and
interest and commission whenever income increase credit
whenever income increase credit interest
and commission account 2000 this is also compound entry two
entries or more entries compound entry of course if you
think both are same you can write cash account debit to
interest 400 cash account debit to commission 2000 instead
of writing cash twice write cash once 2450 2450 450 450 450
interest and commission 450 and commission 450 450 I wrote
cash twice in the cash account instead of writing 450 and
2000.
I wrote the debit 2450 and then wrote the interest and
wrote the commission.
Okay, friends, so brothers, friends, friends, brothers and
their sisters, this is the general