Question

purchased goods from ABC L.T.D
worth 80000 @ 10% trade discount​

Answer 1

Answer:

Explanation:

 List price of seller    Rs.80,000.00

Trade discount          Rs.   8,000.00

Purchase cost             Rs. 72.000.00

Rs.8000.00 discount only will be recorded but purchase amount Rs. 72000.00 will be entered in purchase book

This must be noted that the trade discount is generally recorded in purchase book or sales book but is not entered into ledger accounts and there is no separate entry