Question

catalogue price = 5,00,000 , trade discount = 10% , cash discount = 20% If payment is made within 8 days. Buyer paid half the amount on 8th day and remain half on 10th day solve this problem. ​

Answer 1

Answer:

Given" Purchased goods from dinesh worth rupees 50000.,10%trade discount and 5%cash discount.Half of the amount paid to him immidiately journal entry"

This transaction affects four accounts.. Purchases account (Goods are Purchased) ,Dinesh account (purchased from Dinesh), Cash account (half of the amount is paid in cash), cash Discount recieved (Discount being received)

Trade Discount is not recorded in the books of accounts unlike cash Discount..it is deducted from the List price and net price is considered to be the historical price of that product...

Trade Discount rate = 10%

List Price= 50000

Trade Discount amount = 50000 × 10% = 5000

Actual Price= List price - Trade Discount amount

= 50000 - 5000 = 45000

out of 45000.. 22500 is paid out in cash and rest on credit...

cash Discount= 5%

Cash Discount amount= 22500 × 5% = 1125

Actual cash receivable = 22500

But since cash Discount is recieved.. actual cash will be 21375

The Three golden rules of accounting are

Personal account - Debit the receiver credit the giver

Nominal account - Debit All expenses and losses credit All incomes and gains

Real Account - Debit what comes in ,credit what goes out

segregating accounts: -

Real accounts..all assets and Liabilities come under it

Nominal accounts...all incomes gains losses expenses come under it

Personal account..as the Name suggests..

Cash is Going out..it should be credited.

cash Discount recieved is a gain..it should be credited..

purchases is an expense it should be debited..

Dinesh is the giver..he should be credited..

So the Journal Entry will be.....

Purchases a/c Dr 45000

To Cash a/c 21375

To Discount recieved a/c 1125

To Dinesh a/c 22500

(Being Goods Purchased from Dinesh)

mark me the brainliest

Answer 2

Answer:

entry for payment within 8 days:----

   creditors a/c    Dr   225000

        To cash A/C                       180000

        To  Discount a/c                 45000

entry for payment within 10 days:-------

    Creditors a/c           Dr      225000

       To Cash a/c                      225000

Explanation:

amount od catalogue       500000

less:  trade discount         (50000)

                                           450000

trade discount is not shown in the books of account because it is the means of advertisment while cash discount is recorded in the account within its limit.