Question

Pls solve no 10 of question number7.

Answer 1

OK see price of the goods sold to Nagpal were 50000.
Now after getting the 20% trade discount the price is 40000.
Now on 8 Nagpal returned 1/4th of goods which means foods worth 10000 were returned.
So this means goods of 30000 need to be cashed.

So when Nagpal settled the account. This means that he paid the price of goods and get the 1500 as discount.

Entry will be

Cash A/c. dr. 28500
Discount allowed. dr. 1500
To Nagpal. 30000