purchase goods of 40000 @ 10 on trade discount from raj
Answers
Answer:
please Mark As Brainliest
Explanation:
What is journal entry purchased goods from Mr. Raj worth Rs 20,000 at 10% trade discount & 5% cash discount?
Don't miss India's superhits!
Purchased goods from Mr.Raj worth ₹20,000 at 10% trade discount & 5% cash discount.
What is Trade Discount ?
In simple words, it is discount on the retail price of a commodity which is agreed between traders or is given by a wholesaler to a retailer.
It is not recorded in books of accounts.
What is Cash Discount ?
Cash discount is allowed to the customer for immediate (on the spot) cash payment. The discount is allowed by the seller to the customer to receive prompt payment and to avoid delayed payments.
Cash discount is allowed only on the amount of cash being paid.
Cash discount is recorded in the
Give Amazon a try.
Purchases A/c_Dr (18000)
To Cash A/c (17100)
To Discount Received A/c (900)
(Being goods purchased for cash and avails cash discount @ 5%)
Reason : Purchases Account is debited because it increases the balance of Purchases(Expenses) Account, Cash Account is credited because it decreases the balance of Cash(Assets) Account and Discount Received(Gain) Account is credited because it increases the balance of Discount Received(Income) Account.
Thank You very much to give your Precious Time for my Answer.
Broo!!!
I will upload the questions!!!✌️✌️✌️✌️
(◍•ᴗ•◍)(◍•ᴗ•◍)(◍•ᴗ•◍)(◍•ᴗ•◍)(◍•ᴗ•◍)(◍•ᴗ•◍)(◍•ᴗ•◍)(◍•ᴗ•◍)(◍•ᴗ•◍)(◍•ᴗ•◍)(◍•ᴗ•◍)(◍•ᴗ•◍)(◍•ᴗ•◍)(◍•ᴗ•◍)