Question

Good sold to ram 5000/- allowed
Him 10% trade discount of 2% cash discount

Answer 1

Answer:

Explanation:

Cash received from Ram and discount allowed) ... Jan 6, Sold goods to Muskan of the list price of ₹ 2,00,000 at trade discount of 20%. ... In the Books of Raja Ram ... 2. Amount of goods purchased would be Rs 54,000 (60,000 - 10% of 60,000) and ... 5, Cash ₹ 5,000 paid to Desai and discount allowed by him ₹ 200.

Answer 2

Explanation:

In the case of Trade discount, there is no entry made in the books of accounts of the buyer and seller. It is always deducted before any type of exchange takes place. Hence, it does not form part of the books of accounts of the business. It is usually allowed at the time of purchase.