Question

Purchased goods from richa for 60000 rs. At10 percent trade discount and 5 percent cash discount 60 percent amount paid by cheque immediately

Answer 1

Answer:

Purchases A/c                               Dr                   54000

        to Discount A/c                                                            2700

        to Bank A/c                                                                  30780

        to Richa A/c                                                                 20520

* We don't record Trade discount in book of accounts

So, Net purchases is 54000 (60000 - 10%)

Out of this 54000 we got 5%  Cash discount (54000 * 5%)

So in total we have to pay 51300 (54000 - 2700) to Richa

Out of which 60% (30780) is paid immediately by cheque

and  remaining 20520 (51300 - 30780) is payable to Richa i.e Liability.