goods sold to ram costing rs 10000 at 20% profit allowing 10% trade discount and 5% cash discounyt ram paid 40% amoint immidiately
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Here , goods have been sold to ram for Rs 15000 also allowed discount of Rs 1000. So sales A/c have been credited by Rs 15000 and and Ram's A/c and Discount allowed A/c are debited by Rs 14000 & Rs 1000 respectively.
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