Question

Purchage goods 50000 and 10 % cash discounts and the sold immediately hafe amout of 15 %profite.

Answer 1

1. Purchase A/c...........Dr.            50000

To, Discount Received A/c                               5000

To, Cash A/c                                                      45000

(Being Purchase goods worth 50000 and received 10% discount)

2. Cash A/c................Dr.       28750

To, Sales A/c                                                              25000

To, P & L (Profit)                                                         3750

(Being Half of lots were sold on 15% profit)