Question

purchase goods from raghav at 20% trade discount and 10% cash discount for 40000. short note and pass journal entry ​

Answer 1

Explanation:

ASSUMING THAT PURCHASES IS MADE FOR CASH

purchases a/c dr 40000

to trade discount a/c. 8000

to cash discount a/c. 4000

to cash. 28000

(being purchases made for 40000 where 20% as trade discount and 10% as cash discount)