Question

purchased goods of$ 20,000 @ 2% Cash discount

Answer 1

In the books of Priya :

Purchases A/C. Dr. Rs 20,000

To cash discount A/C. Rs.400

To cash A/C. Rs.19,600

(Being goods purchased and cash paid)

Method of solving :

List price = Rs.20,000

Cash discount = 2%( 20,000) = Rs.400

Amount to be paid = Rs 20,000- Rs.400

Rs 19,600

Answer 2

Hey mate ✌️✌️

Journal Entry ⏬⏬⏬⏬

Purchase A/c............................Dr...20000
....To cash A/c...19600
....To cash Discount A/c..400

✨ Hope this helps you ✨