Question

(1) Purchased from Kamal Banerjee, Kolkata as per details:(a) List Price 70 per pen.(b) Trade Discount @ 10% and Cash Discount 5%(c) 1,000 pieces were purchased and amount was paid immediately by cheque​

Answer 1

Answer:

Explanation:

Purchase A/c Dr  63,000.00

    To Bank A/c              59,850.00

    To Discount A/c          3,150.00

(being purchased from Kamal Banerjee, Kolkata as per details:(a) List Price 70 per pen.(b) Trade Discount @ 10% and Cash Discount 5%(c) 1,000 pieces were purchased and amount was paid immediately by cheque​)

1000 pieces of pen @ 70.00 =70,000.00

Trade discount    10 %            =   7,000.00

  Total Purchase value          =  63,000.00

Cash Discount   5 %              =     3,150.00

Amount Paid                          =  59,850.00