DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : R. ROHINI
Designation : Lecturer
Branch : D.C.C.P.
Institute : S.G.M. Government Polytechnic,
Abdullapurmet, R.R.Dist
Year/Semester : I Year
Subject : ACCOUNTANCY-I
Subject Code : CCP-102
Topic : Subsidiary Books
Duration : 50 Minutes
Sub-Topic : Sales Book
Teaching Aids : PPT and Animations
CCP102.42 1
Objectives

On completion of this period you would be able to

understand :
 How Trade Discount is calculated
 How it is deducted from Sales
 How the amount is posted in Ledger Accounts

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Structure of the lesson

 Recap
 Problem
 Working Notes
 Sales Book
 Sales Account
 Individual Accounts
 Summary
 Quiz
CCP102.42 3
Recap

We know:
 How to enter simple transactions in Sales
Book
 How to post into Ledger Accounts

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Let us now see

 How to prepare Sales book with Trade Discount

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Problem on sales book with trade discount
Prepare Sales Book of Ananda Rao and post into Ledger
Accounts:
2006
July 1st Sold on credit to Kavya:
10 Stools @ Rs.50
30 Chairs @ Rs.20
11th Sold to Divya at 10% Trade Discount
2 Almirahs @Rs.1,000
1 Dining Table @Rs.5,000
18th Sold one Typewriter for Rs.8,000 to Navya at 5% Trade
Discount
20th Sold for cash 1 Desk to Bhavya for Rs.2,000
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Working notes
July 1st 10 x 50 = 500
30 x 20 = 600
-------------
1,100
-------------
July 11th 2 x 1,000 = 2,000
1 x 5,000 = 5,000
--------
7,000
Less 10% Trade Discount 700
--------
6,300
--------

July 18th 8,000

Less 5% Trade Discount. 400
---------
7,600
----------

CCP102.42 7
 SALES BOOK
DATE Particulars Outward L. AMT
invoice No. F. Rs

2005 1,100
July 1st Kavya
11th Divya 6,300

18th Navya 7,600

Total 15,000

CCP102.42 8
 SALES ACCOUNT
Dr. Cr.
Date Particulars L AMT Date Particulars L AMT
F Rs F Rs
2008
Jul1 st By Sundry 15,000
Debtors

CCP102.42 9
 Kavya’s Account
Dr. Cr.
Date Particulars L AMT Date Particulars L A
F Rs F MTR
s

2005
Jul1st To Sales a/c 1,100

CCP102.42 10
 Divya’s Account
Dr Cr
Date Particulars L AMT Date Particulars L AMT
F Rs F Rs

2005
Jul11th To sales 6,300
a/c

CCP102.42 11
 Navya’s Account
Dr Cr
Date Particulars L AMT Date Particulars L AMT
F Rs F Rs

2005
Jul To sales 7,600
18th
a/c

CCP102.42 12
Note :

 Desk sold to Bhavya is not entered in Sales

book because it is Cash Sale

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Summary

 We have seen a problem with Trade Discount

 How to deduct Trade Discount in Working notes
 Not to show Trade discount in the books of
account

CCP102.42 14
 QUIZ
1. How do you treat Trade Discount?
• Deduct from Sales
• Add to sales
• None

2. Where do you show Trade Discount in individual

accounts of Debtors?
a) Debit side
b) Credit side
c) Not shown
CCP102.42 15
Frequently asked questions

1. What is Sales Book?

2. Where are credit sales recorded?

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THANK YOU

CCP102.42 17