Question

how to find out trade discount of 5000

Answer 1

Hey, ✋ there your answer is ______,

▶ Question : How to find out the trade discount of 5000?

⏩ Answer : To find out the trade discount, you may follow these simple and easy steps, they are as follows:-

↪ Firstly, you have to recognize the rate of trade discount on the goods i.e., given in the question as like, 5% trade discount on the sale of goods.
So, here the rate of trade discount is 5%.

↪ As you know how to find the appropriate money from the percentage.
i.e.,
$= 5000 \times \frac{5}{100} \\ \\ = 50 \times 5\\ \\ = 250 \: \: \: answer$
↪ So according to your rate of trade discount find the trade discount.

➖ Trade discount in terms of money when found, deduct it from the total cash.

➖ The entry doesn't contains the amount of trade discount.

➖ Hence, the entry will be as follows,

⭕ Purchases A/c Dr. (Amount after deduction of trade discount)
To Cash A/c (Amount)
(Being goods purchased on 25% trade discount)

✔ Hope it may helps u...!!! ☺