purchase goods from ashok for 50000 at 20% td half the payment was made in cash
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Answered by
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Purchase A/c Dr. 40,000
.. To creditors a/c.. ... 20,000
.... To Cash a/c............ ... 20,000
[. Being goods purchase on credit as well as cash at trade discount.]
Trade discount not shown in the books of accounts bcz it is an indirect expense i. e, discount on goods thus only deducted from goods amt. and not shown in books of accounts.
In above journal entry,
Goods are purchase by the business thus somethings received by the business. HENCE debited to business but In against of this goods received half amount paid the business in cash and other is not given then always credit...
.. To creditors a/c.. ... 20,000
.... To Cash a/c............ ... 20,000
[. Being goods purchase on credit as well as cash at trade discount.]
Trade discount not shown in the books of accounts bcz it is an indirect expense i. e, discount on goods thus only deducted from goods amt. and not shown in books of accounts.
In above journal entry,
Goods are purchase by the business thus somethings received by the business. HENCE debited to business but In against of this goods received half amount paid the business in cash and other is not given then always credit...
Answered by
7
puchase a/c dr.
to creditors a/c..
to cash @/c
to creditors a/c..
to cash @/c
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