Question

Purchased goods from Rama & Sons of list price* 50,000 at 20% trade discount
and 3% cash discount. 75% of the payment was made immediately by cheque.
please help​

Answer 1

Answer:

purchase a/c Dr 40000

to cash discount 1200

bank a/c 29100

ram &sons 9700

Explanation:

purchase is expenses so it would have Dr balance

purchase is expenses so it would have Dr balance cash discount is received so it is a income so cr

purchase is expenses so it would have Dr balance cash discount is received so it is a income so crcheque is being paid so bank balance is getting low so cr

purchase is expenses so it would have Dr balance cash discount is received so it is a income so crcheque is being paid so bank balance is getting low so cr ram & sons are creditor so cr balance

remember trade discount is not recorded in books u just have to remove it from amount