Question

Bought goods from shekhar on two months credit for Rs.7000 at 20 trade discount with instruction to send them to sagar,then what will be its journal entry??

Answer 1

Answer:

Purchases A/c       Dr      5600

     To Shekhar A/c                   5600  

Explanation:

Since the goods are purchased on credit Shekhar i.e accounts payable will be credited.We do not record trade discount in books thus 7000-7000*20%=5600

When it will be sent to Sagar,then another journal entry to be passed:-

Sagar A/c     Dr  

    To Purchases A/c

Answer 2

Answer:

hope you will satisfied with my answer .. !!