Question

journalise the transaction along with working notes : bought goods of the list price of rs 1,00,000 from gopal brothers less 20% rate discount and 5%cash discount and paid 60%by cheque the rate of CGST and SGST is 6%each​

Answer 1

Explanation:

Discount are two types , trade discount and cash discount.

Trade discount is allowed on the list price hence amount of trade discount is not reflected in books of account.

Net price i.e. after deducting trade discount is only recorded in the books of account.

Purchase Price Rs.10000

Less: Trade Discount Rs.500

Net Purchase Price Rs.9500

Hence, Purchase account will be debited by Rs.9500.