Question

April 2 : Purchased goods of rupees 200000 less trade discount 10% from Prabhat electric co on the terms that on payment received within 10 days cash discount will be allowed at the rate 5% and on payment received with the next 20 days 2% cash discount will be allowed .

April 5: paid amt. to prabhat electric co.

Answer 1

Answer: goods cost = 200000

less trade discount 10% that is 20000

200000 - 20000 = 1,80,000

he purchase goods on April 2 and give amount on April 5 . So according to question the purchaser received the cash discount at 5%

5 % of 1,80,000 will be = 9000

now the entry wii be :

purchase a/c Dr. 1,80,000

To cash a/c 1,71,000

To dis. received a/c 9000

it has taken a little beat more time. But I solved it.

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