Question

Goods of 7500 are sold to Narendra at 10 % trade discount and he has paid
2000.

Answer 1

Answer:

Cash/ Bank A/c.  Dr  2000

Disc. Allowed A/c Dr 750

Narendra A/c            4750

                   To Sales A/c      7500  

Explanation:

Discount = 7500 x 10% = 750

Balance amount payable = 7500-750-2000 = 4750

Naredra A/c is debited wit 4750 as a Debtor for the Business.