Question

paresh purchased goods worth rs 6,500 @2% trade discount from us journal entry​

Answer 1

Answer:

Paresh's a/c Dr. 6370

To sales a/c 6370

(Being goods sold to Paresh worth of 6500 @ 2% trade Discount)

Explanation:

Paresh purchased from us, it means we sold the goods to Paresh & first of all it must be disclose that in which party's book we have to record the journal, there is nothing mentioned about it...

the give journal is in the books of seller, meanwhile in the books of buyer the journal will be as below:-

Purchases a/c Dr. 6370

To creditor (name) 6370

(Being goods purchased from creditor (name) worth of 6500 @ 2% trade Discount)

Note:- Trade discount wouldn't show in the books of record, it's directly calculated & will not record.