Mittal Cycles purchased 100 cycles from Hero Cycles, Ludhina (Punjab) @ Rs. 1,200 per cycle plus IGST @ 12%. Hero Cycles allowed 10% Trade Discount and 3% Cash Discount if payment is made within 14 days. Mittal Cycles received 10 cycles damaged during transit, which it returned. Mittal Cycles settled the payment in 10 days time.
u200bPass Journal entries for the above transactions.
