Question

Purchase goods from Ramesh 3000 trade discount 10% cash paid 1700.

Answer 1

Purchases A/c Dr. 2,700 (3,000 less Trade discount of 10% or 300)

To Cash A/c 1,700

To Ramesh A/c 1,000

(Being goods purchased from Ramesh. 1,700 paid, balance is outstanding.)

Answer 2

purchase good - 3000

- t.d @10%         -    300

                         =  2700

cash paid          -  1700

credit balance   - 1000 (to be paid)