Accountancy, asked by ayeshanz372, 1 year ago

Purchase goods to raj rs 10000,10% T.D ,10%C.D,he also pay 40%

Answers

Answered by manish2808
2
List price is 10,000.

Less Trade discount 10% of 10,000 or 1,000 .

Net price 9,000.

Less 10% cash discount on net price or 900.

Net price payable is 8,100.


Journal entry is:

Purchases account Dr. 9,000
To Cash account (8,100 x 40%) 3,240
To Sundry creditors account (8,100 x 60%} 4,860
To discount received account 900.
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