Question

Goods sold to janki worth rs 12000 at 20% trade discount and 2.5% cash discount.60% amount received in cash.

Answer 1

Answer:

On a machine there is 10% trade discount on the marked price of Rs 2,50,000. But the machine is sold at ? 2,16,000 after givinga cash discount. How much is this cash discount (in%)?

Answer 2

Answer:

DEBTOR A/C DR 3744

CASH A/C DR 5616

DISCOUNT ALLOWED A/C DR 240

TO SALES A/C. 9600

Explanation:

TRADE DISCOUNT IS A DISCOUNT ALLOWED BY THE SELLER TO THE PURCHASER OF GOODS IN LARGER QUANTITY.IT IS NOT SHOWN SEPERATLY RATHER DEDUCTED FROM THE PRINCIPAL VALUE.