Question

purchased goods from Sanjiv at list price of rupees 40000at the 10% trade discount and 5% cash discount. Amount was paid at the time of purchase itself ​

Answer 1

Answer:

amount of purchase = 40000-4000(10% trade discount)

= 36000.

amount paid =36000-1800(5% cash discount)

= 34200

purchase account. dr. 36000

To cash account. 34200

To discount received. 1800