Question

baught goods from amit for 200000 at term 5%cash discount and 20% trade discount paid 3/4th of the amount in cash at the time of purchase

Answer 1

Answer:

Purchases ac dr 1,60,000

To dis count received ac cr 8,000

To Cash ac cr 1,14,000

To Amit ac cr 38,000

Explanation:

purchases 2,00,000 . But trade discount is mentioned,so by calculating td on purchase amt it is 40,000. As trade dis is not mentioned in books of acc purchase amt is written deducting td ie. 1,60,000.

calculate cash dis on 1,60,000

1,60,000×5/100 =8000

so ie. the dis recieved.

deducting dis from 1,60,000 the ans is 1,52,000

we were paying that amt but we paid only 3/4th of it so 3/4th of 1,52000 is 1,14,000

remaing amt is amit ac