Question

Purchased goods from suresh of the list price of Rs.8000 at 20% trade discount and paid him by cheque

Answer 1

Answer:

Purchases a/c dr 6400

To bank a/c 6400

___________^_^_________.

Answer 2

Answer:purchases a/c -Dr. 7840

To bank a/c 7840

Explanation 8,000 × 20_

100

= 160

then , 8000-160=7840

we don't show trade discount as a dis. recieved or allowed bcs it is a list price.