Prepare the Sales Book and Sales Account for these credit sales with 10% trade discount: Falgun 1 sold to ABC Co. 15 electric heaters @ Rs 1,000 each and 10 table fans @ Rs 500 each; Falgun 28 sold to XYZ Co. 20 small tables @ Rs 700 each and 25 chairs @ Rs 400 each.

What you are preparing

You have two credit sales invoices, and each invoice gets a 10% trade discount on the total of the items. In the Sales Book (Sales Day Book) you record the gross amount, discount, and net amount for each customer.

Calculate each invoice total (gross, discount, net)

Falgun 1, sold to ABC Co.

• Electric heaters: $15 \times 1{,}000 = 15{,}000$
• Table fans: $10 \times 500 = 5{,}000$
• Gross invoice total: $15{,}000 + 5{,}000 = 20{,}000$
• Trade discount @ $10\%$: $20{,}000 \times 10\% = 2{,}000$
• Net credit sale: $20{,}000 - 2{,}000 = 18{,}000$

Falgun 28, sold to XYZ Co.

• Small tables: $20 \times 700 = 14{,}000$
• Chairs: $25 \times 400 = 10{,}000$
• Gross invoice total: $14{,}000 + 10{,}000 = 24{,}000$
• Trade discount @ $10\%$: $24{,}000 \times 10\% = 2{,}400$
• Net credit sale: $24{,}000 - 2{,}400 = 21{,}600$

Sales Book (Sales Day Book)

Sales Account (Ledger posting)

In the ledger, Sales A/c is credited with the total net credit sales from the Sales Book.

Sales Account

(Separately, you would debit ABC Co. Rs 18,000 and debit XYZ Co. Rs 21,600 in their personal accounts, but the question only asks for Sales Book and Sales A/c.)