Question

M/s. Auto Help Delhi purchased 500 pieces of motor cycle horns at Rs. 100 each plus IGST @ 12% from M/s G. S., Auto Ghaziabad, (UP). Trade terms settled were: Trade Discount Will be allowed @ 10% and Cash Discount @ 5% if payment is made within 7 days. M/s. Auto Help made the payment after 30 days. Determine the amount of Trade Discount and Cash Discount.

Answer 1

purchase value =500*200                         
                          =100000 
trade discount = 100000*10%                     
                         = 10000
net puchases= purchases- trade discount      
                        =100000-10000      
                          =90000

IGST = 90000*12%      
           =10800


Jounal entry for purchases
 
Puchases A/c Dr    90000
IGST A/c      Dr     10800 
      To M/s. Auto Help A/c       100800
(being goods purchases)

as M/s. Auto Help made the payment after 30 days cash discount wont available

hope answer is useful 

Answer 2

Answer:

given in the attached photo

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