Question

Brought goods for the list price of Rs 10,000 form 10% trade discount and 5% cash discount for cash​

Answer 1

Answer:

Purchases A/C Dr 9000

To Cash A/C 8550

To Discount Allowed A/C 450

(Being goods Purchased for cash)

Explanation:

Trade Discount =

10000 x 10 /100

= 1000

Therefore Invoice Price

=10000-1000 = 9000

Cash Discount =

9000× 5/100

=450

Therefore goods were purchased at

Rs 9000-450 = 8550.

Answer 2

Answer:

Explanation:

Purchases. 9000

To Discount received. 450

To cash. 8550