Question

Purchase goods from ram of rs 200000 @10%td .5%cd.50%amount paid by cash

Answer 1

Answer:

Purchase A/c Dr 18000

To Cash A/c 8550

To Discount received A/c 450

To Ram 9000

Explanation:

Goods are purchased so Purchase account was debited.

((Trade discount is 10% i.e 10% of 20000 = 2000, trade discount is given on all goods purchased whether in cash or in credit , 2000 was deducted and amount of Rs 18000 will be shown in the books and remember this the trade discount will never shown in the books)).

Only 18000 of goods purchased will be shown in the books , so we have to pay only 18000, not 20000 [( Trade discount is received of 10%)].

Cash discount ((given 5©)) is given only on the cash paid and in the question 50% of amount is paid .i.e 9000 is paid in cash so the Cash discount of 5% will be given on this only.