Question

Purchased goods of 50000 from
Ram charged at 6% trade discount
and rieved cash discount of 5%
30% of amount is paid in cash

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Answer 1

Explanation:

List price = Rs.50,000

Trade Discount = 10%(50,000) = Rs.5000

Agreed Price = Rs.50,000 - Rs.5000 = Rs.45,000

Immediate cash payment = 50%(45,000) = Rs.22,500 - Rs.2250 = Rs.20,250

Cash Discount = 10%(22,500) = Rs.2250

Journal Entry

Purchases A/C Dr Rs.45,000

To Cash A/C Rs.20,250

To Cash Discount A/C Rs.2250

To Ram A/C Rs.22,500

(being goods purchased from Ram)

Answer 2

Answer:

total answer is ₹22,500