Question

goods purchased of rs 7000 and recieved 5percent discount ,------ account will be debited for ----- amount ?​

Answer 1

Answer:

purchase account will be debited, with amount 6650

Explanation:

as it is not given Wheather it is cash discount or trade discount we will treat it as trade discount and it is not shown in accounts

Answer 2

Answer:

Purchase account will be debited for 6,650 amount.

Explanation:

Gods purchased = Rs. 7,000

According to question 5% discount is recived on the purchase of goods. It is not specified in the question that is the discount is cash discount or trade discount. So, the discount in the question will be considered as cash discount. As the cash discount don't have any entry in the books of accounts, it will be not shown in the entry but the amount of discount will be considered and it will be deducted from the original price of the goods.

So the entry will be:

PURCHASE A/C. DR. 6,650

TO CASH A/C. 6,650

(Being goods purchased for cash)

Hope it helps you