Question

purchase good worth rupees 10000 at 5 percent cash discount calculate cash discount​

Answer 1

Explanation:

Discount are two types , trade discount and cash discount.

Trade discount is allowed on the list price hence amount of trade discount is not reflected in books of account.

Net price i.e. after deducting trade discount is only recorded in the books of account.

Purchase Price Rs.10000

Less: Trade Discount Rs.500

Net Purchase Price Rs.9500

Hence, Purchase account will be debited by Rs.9500.

Answer 2

Answer:

₹500 is cash discount

Explanation:

10000×5/100

=500