Question

purchase goods worth rupees 20000 at a trade discount of 10% please explain infully language​

Answer 1

Answer:

Purchases a/c Dr 18,000

To cash a/c 18,000

Explanation:

In the above we purchased goods so the purchases a/c will be debited because goods are coming in and as cash is given so it is credited.Trade discount will be subtracted from the list price and it will not be shown in the books of account