Question

goods purchase from rahul rs. 20000 a 10 per trade discount and 5 per cash discount payment made by cheque

Answer 1

total price = 20000
less: 10% trade discount = 2000
Net amount = 20000-2000= 18000

journal entry= purchase A/c dr
to rahul A/c

invoice price to customer is now 18000
& cash discount is allowed

invoice = 18000
less:5% cash discount =900
net amount for customer= 17100

journal entry= purchase account dr 17100
discount. 900
to rahul a/c 18000

.........//thankyou...//...............