Question

Goods purchased from Anil and he allowed us 10% trade discount 350​

Answer 1

Answer:

Explanation:

In the captioned case trade discount was allowed @ 10 % i.e. 350.00 as such the total cost would be 3500.00.  Following entry will be made in the journal.

Purchase A/c Dr 3150.00

 To cash                31500.00

(being Goods purchased from Anil and he allowed us 10% trade discount 350​)

Note: trade discount is only recorded and no entry of trade discount will be made)