Question

cash sales of good worth ₹4000 at 5%TD and 1%CD to madan ​

Answer 1

Answer:

Journal Entry

Explanation:

Cash A/c                            Dr.        3,762

Discount Allowed A/c       Dr.             38

     To sales A/c                                                 3,800

(Being goods sold and allowed 5% Trade Discount and 1% Cash Discount)

Working Note -

Calculation of 5% TD =

                          4,000 x 5% = 200

==> 4,000 - 200 = 3,800

Calculation of 1% CD =

                              3,800 x 1% = 38

(Note: Trade discount is never shown in Journal)

Hope you will find this helpful...

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