You are required to pass necessary journal entries in the books of Batra: (i) Employees had taken stock worth - 25,000 (Cost price - 22,500) on the…

In the books of Kewal Journal entries Particulars Dr. Amount ₹ Cr. Amount ₹ (i) Salaries A/c Dr. 22,500 To Purchase A/c 22,500 (Being entry made for stock taken by employees) (ii) Manik’s A/c (WN -1) Dr. 25,200 To Sales A/c (WN-2) 22,500 To Output CGST A/c 1,350 To Output SGST A/c 1,350 (Being goods to manik at trade discount and CGST & SGST @6%. (iii) Sales promotion A/c Dr. 6,000 To Purchases A/c 6,000 (Being the goods distributes as free samples). (iv) Bank A/c Dr. 10,000 To Commission A/c 10,000 (Being commission received). Commission A/c Dr. 5,000 Prepaid Commission A/c 5,000 (Being commission received in advance adjusted). (v) Machinery A/c Dr. 4,00,000 Input CGST A/c Dr. 16,000 Input SGST A/c Dr. 16,000 To Bank A/c 1,00,000 To Swayam Industries A/c 3,32,000 (Being machinery purchased from Swayam and paid - 1,00,000 immediately CGST and SGST @4% each) Workings: Manik’s Account will be debited (not Cash A/c) since Manik did not avail the cash discount.Value of Sales = Cost Price+ Profit – trade Discount = 20,000 +5,000 -2,500 = 22,500 20,000 x 25/100 = 5,000 Trade Discount = (₹ 20,000+5,000) x 10/100 = 2,500