Question

1 (a) M/s. Vanish Traders, Delhi purchased 500 Parker Pens @ 200 each less Trade Discount
@ 15% from Luxor Pens Ltd., Delhi. CGST and SGST was levied @ 6% each. Further, Cash
Discount was allowed @ 5% as the payment was made within specified time. What will be
the amount of trade discount and cash discount? Pass Journal Entry also.​

Answer 1

Answer:

M/s. Vaish Traders, Delhi purchased 500 Parker Pens @ Rs 200 each less Trade Discount @ 15% from Luxor Pens Ltd., Delhi. CGST and SGST was levied @ 6% each. Further, Cash Discount was allowed @ 5% as the payment was made within specified time.