Question

Purchase timber from Singh &co at the list price of 20000 allowed 10% trade discount

Answer 1

"The journal dairy will be:

Purchase (dr.) 20000

To discount received 2000

To Singh and sons 18,000

(being goods bought on 10 per cent trade discount)

You need to calculate the total discount on the entry to ensure the correct value that will come on the purchase of timber and how much will be received by the bank.

"

Answer 2

hy user

Here's ur answer

Purchase A/c Dr. __20,000__

To Discount Received A/c __2,000__

To Singh &Co. _18,000___