B discount allowed and discount received c an

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(b) Discount Allowed and Discount Received. (c) An allowance to be given to customers or a charge to be made to them after the issue of the invoice. (d) On an amount becoming irrecoverable, say, because of the customer becoming insolvent. (e) Effects of accidents such as loss of property by fire. Q.20. Distinction between Special Journal and General Journal. Ans.
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51 Address: Plot No 420, Behind Shopprix Mall, Vaishali Sector 5, Ghaziabad 201010 M: 9999907099, 9818932244 O: 0120-4130999 Website: , Basis Special Journal (Subsidiary Books) General Journal (Journal Proper) Nature of transactions recorded It records transaction of similar nature, e.g., Purchases Book records only credit purchases. It does not record transaction of a similar nature. Format It is in the form of a statement. It is in the form of a Journal. Need A business unit may not have a Special Journal. A business unit must have a Journal Proper. Posting Each transaction is not recorded in the ledger separately. Each transaction is recorded in the ledger separately. Rectification A mistake in the Journal Proper is not rectified by a Special Journal. A mistake in Special Journal is rectified by the Journal Proper. Q.21. What is Central Sales Tax ? Ans. Central Sales Tax is charged on inter-state sales from the customers on the net sale value, i.e., sale value less Trade Discount. Q.22. What is Value Added Tax (VAT) ? Ans. VAT is the tax charged on local (within the state) sales. The VAT paid on purchases is set-off against VAT collected on sales and balance in the VAT Collected Account is deposited in the Government Account. Q.23. What are Freight and Packing Charges ? Ans. Freight and Packing Charges are charged from the customer along with the cost of goods sold in the sale invoice itself. Q.24. Distinction between Sales Book and Sales Account. Ans. Basis Sales Book Sales Account Part It is a part of a Journal Book. It is apart of a ledger. Format Like a Ledger Account, it does not have debit and credit columns. It has debit and credit columns. Contents Only credit sales of goods are recorded. Credit as well as cash sales of goods are recorded. Amount Total amount of Sales Book is posted to the Sales Account periodically. Balance in the account is transferred to the Trading Account.
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