Question

purchase goods of rs20000 from manisha and get 10% trade discount and get 10% cash discount journal entry

Answer 1

Purchase a/c. Dr. 18000

To Cash discount a/c 1800

To Manisha 16200

( being goods purchased from Manisha with cash and trade discount)

Answer 2

Calculation of trade discount and cash discount

Trade discount = 20000 * 10%

                          =2000

# no journal entry for trade discount , trade discount deducted from purchases only

Net purchases = purchases - trade discount

                           = 20000 - 2000

                           =18000

Cash discount = 18000 * 10%

                         = 1800

Net agreed price = 18000 - 1800

                             =16200

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Journal entry

Purchases A/c   Dr   18000

      To discount received A/c          1800

      To cash A/c                               16200

(being purchases made)