(a) Prepare Purchase book and Sales book in the books of Santhosh Textiles Ltd., from the following transactions given for April 2017. | Date | Particulars | | --- | --- | | April 1 | Purchased goods from Prasad, Kancheepuram on credit — 100 meters silk @ ₹ 450 per meter; 75 meters velvet @ ₹ 180 per meter | | April 10 | Sold goods to Rathinam, Chennai on credit — 60 meters silk @ ₹ 490 per meter; 50 meters velvet @ ₹ 210 per meter | | April 18 | Nathan & Sons purchased from us on credit — 100 meters silk @ ₹ 510 per meter | | April 20 | Purchased goods from Hari Ram & Sons, Madurai on credit — 50 rolls kada cloth @ ₹ 730 per roll; 80 rolls calico cloth @ ₹ 650 per roll | | April 24 | Purchased from Mohan, Karur for cash — Shirting cloth @ ₹ 7,000; Sarees @ ₹ 25,000 | OR (b) Bring out the differences between cash discount and trade discount.

(a) Prepare Purchase book and Sales book in the books of Santhosh Textiles Ltd., from the following transactio

Question 17 of 28

(a) Prepare Purchase book and Sales book in the books of Santhosh Textiles Ltd., from the following transactions given for April 2017.

Date	Particulars
April 1	Purchased goods from Prasad, Kancheepuram on credit — 100 meters silk @ ₹ 450 per meter; 75 meters velvet @ ₹ 180 per meter
April 10	Sold goods to Rathinam, Chennai on credit — 60 meters silk @ ₹ 490 per meter; 50 meters velvet @ ₹ 210 per meter
April 18	Nathan & Sons purchased from us on credit — 100 meters silk @ ₹ 510 per meter
April 20	Purchased goods from Hari Ram & Sons, Madurai on credit — 50 rolls kada cloth @ ₹ 730 per roll; 80 rolls calico cloth @ ₹ 650 per roll
April 24	Purchased from Mohan, Karur for cash — Shirting cloth @ ₹ 7,000; Sarees @ ₹ 25,000

(b) Bring out the differences between cash discount and trade discount.

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(a) Purchases book ₹1,47,000 and Sales book ₹90,900 (cash purchase of 24 April excluded). (b) Trade discount vs cash discount distinguished.

Date	Particulars (supplier and goods)	Details ₹	Amount ₹
April 1	Prasad, Kancheepuram
	100 m silk @ ₹450	45,000
	75 m velvet @ ₹180	13,500	58,500
April 20	Hari Ram & Sons, Madurai
	50 rolls kada cloth @ ₹730	36,500
	80 rolls calico cloth @ ₹650	52,000	88,500
April 30	Total (Purchases A/c Dr)		1,47,000

(The 24 April purchase from Mohan, Karur was for cash, so it is recorded in the cash book, not the purchases book.)

Date	Particulars (customer and goods)	Details ₹	Amount ₹
April 10	Rathinam, Chennai
	60 m silk @ ₹490	29,400
	50 m velvet @ ₹210	10,500	39,900
April 18	Nathan & Sons
	100 m silk @ ₹510	51,000	51,000
April 30	Total (Sales A/c Cr)		90,900

Basis	Trade discount	Cash discount
Meaning	Reduction allowed on the list price/catalogue price of goods	Reduction allowed for prompt/early payment
Purpose	To promote sales / for bulk buying	To encourage quick settlement of dues