Question

Purchased goods from Richa for 60,000 at 10% trade discount and 5% cash discount. 60% amount paid by cheque immediately.

Answer 1

Answer:

Explanation:

purchase a/c dr              60000

     To, trade discount                     6000  

     To, Cash discount                      2700

     To, bank                                     30780

     To, sales                                     20520                                              

workings:

1) Trade discount = 60000 * ( 10 %) = 6000

2) Cash discount = ( 60000 - 6000 ) * 5% = 2700

3) Immediately paid by cheque = ( 60000 - 6000 - 2700 ) * 60%

                                                   = 30780