Question

bought goods in cash 40,000 from z at 10% trade discount and 5% cash discount
please tell the journal entry ​

Answer 1

Answer:

1. purchase a/c Dr 36000

To z a/c. 36000

(being goods purchased on credit after trade discount of 10%)

2. z a/c. Dr 36000

To cash a/c 34200

To discount recieved a/c 1800

(being cash paid & discount recieved at 5%)