Question

jornal entry 5000rupes 5%t.d 2% cash discount

Answer 1

Answer:

Journal entry,

Purchases a/c. Dr. Rs 4750

To Cash a/c. Rs4655

(4750 - 95)

To Discount received a/c. Rs 95

( 4750x 2%)

(Being goods purchased worth Rs5000@ 5% trade discount and cash discount of 2%)

Explanation:

Purchases of 5000Rs

Trade discount should be directly deducted from the value of purchases i.e 5000 - 5% of 5000

5000 - 250 = 4750 Rs