Question

Journalise the following in the books of shrinath Apte.• Sold goods to kaushal of the list price of ₹12,500 less 20% trade discount and 2% cash discount and paid 40% by cheque. *Salary due to clerk ₹1250. *​

Answer 1

First Subtract Trade Discount from the given amount

12500×20/100=2500

12500-2500=10000

*Note:- Do not show Trade Discount in journal entry *

Now

Find 40% amount which is paid by cheque

10000×40/100=4000

10000-4000=6000

6000 is paid by cheque

and remaining 4000 is paid by cash so we will deduct cash discount from the amount which was paid by cash

Because cash discount is only given on cash transactions

Cash Discount

4000×2/100=80

4000-80=3920