Question

Nandlal purchased good of list price 20000 and trade discount of 10% is allowed then nandlal returns goods on list price 4000 . What will be its entry

Answer 1

Answer:

purchases a/c 18000

to creditor a/c 18000

(being goods purchased )

creditor a/c 3600

to purchase rerurn a/c 3600

(being goods returned )