Question

Goods purchased 10000with 10% trade discount and 2% cash discount on purchase price

Answer 1

Answer:

hey mate

here is your answer

list price--> 10,000

trade discount (2%)---> 200

agreed price ---> 9,800

cash discount (5%)--> 490

journal entry

purchase A/C dr 9800

to cash A/C. 9310

to discount A/C. 490

(being goods purchased at 5%cash discount)