Purchase goods from Shriram of 40000 and trade discount is 10%
Answers
Answer:
PURCHASE A/C DR. 36000
TO SHRIRAM A/C. 36000
Journal entry
Explanation:
Books of (----Limited)
Journal Entry
Date Account Title and Explanation Debit Credit
Purchase A/c Dr. 36,000
To Shriram A/c 36,000
(Being goods purchase from Shriram on discount)
Note: There will be no entry held for a trade discount.
Calculation of trade discount:
40,000 x 10% = 4,000
Amount of purchase = 40,000 - 4,000
Amount of purchase = 36,000
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