Question

Purchased good from tanmay by cash at 10% trade discount and cash discount 5%

Answer 1

As you had not mentioned the amount of goods purchased. So, let us take an amount of ₹62,000.
JOURNAL ENTRY——

Purchases a/c ——dr. 55,800
To cash a/c 2,790
To discount received a/c. 53,010

(Being goods purchased from Tanmay by paying cash after getting cash discount)

As we know that we cannot record trade discount in the books of account except cash discount.
So, 55,800 is the amount derived after deducting trade discount.

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