Question

Purchased goods for cash Rs88000 subject to trade discount @5%

Answer 1

Answer:

Purchases a/c 88000 SPLOCI PL

To discount received 4400 SPLOCI PL

To cash a/c 83600 SOFP

Explanation: YOU BOUGHT GOODS AND GOT A DISCOUNT. RULE OF NOMINAL ACCOUNT IS TO DEBIT ALL EXPENSES AND LOSSES AND CREDIT ALL INCOMES AND GAINS. SO TRADE DISCOUNT IS A GAIN HERE.

Answer 2

Answer:final payment made for goods purchases is 83600.

Explanation:first calculate trade discount which is 4,400 now it is a trade discount which means the purchaser not gonna payment for total 88000. So subtract trade discount from (88000 -4400) you got 83600 which is the answer.