On 1 February, 2020 Mr. Anas Decided to buy a home theatre system for his jewellery shop for the entertainment of his customers. For this purpose he contacted Mr. Salman, who is a seller of electronic appliances. Mr. Salman had a Home theatre system at Price of Rs. 200,000. After heated negotiations with Mr. Anas, Mr salman agreed to sell the Home theatre at a price of Rs. 180,000 with 50% cash payment, and remainder to be paid before February, 28, 2020 to claim 10% additional discount. Following are the other transactions that also took place along with the purchase of Home theatre system.
- He paid Rs. 2,000 & 3,000 repective for delivery & installation.
- During the delivery one speaker was damaged, and was replaced at a cost of RS. 10,000
- Mr, Anas also subscribed to a premium Cable connection for Rs. 2000/ per month.
- Mr, anas paid the remainder on 29 February, 2020.
REQUIRED: Compute the cost that should be capatilized in the books of Mr. Anas, and also prepare respective journal entries
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