Purchased goods of ₹90,000 at 10% Trade discount and 10% cash discount from Rakesh and 1/3rd amount recived by cheque?
How to solve this joirnal
Answers
First you have to calculate the cost of good minus the trade discount
cost = 90000
(-) t.d = 9000 (10%)
total = 81000
second you have find out out the amount that has been paid
cost = 81000
1/3rd of 81000 = 81000 * 1/3
= 27000
third then you have to minus the cash discount from the amount that has been paid
cost = 27000
(-) c.d = 2700 (10%)
total = 24300
therefore , the invoice price of good is 81000.
the amount paid by cheque is 24300 and the discount received by us 2700.
the journal entry will be as follows :
Purchase A/c .......Dr 27000
To Bank A/c 24300
To Discount Received A/c 2700
(Being good purchased at 10% t.d,
paid 1/3rd amt by cheque and availed
c.d 10% )
Answer:
If you purchased good for 90,000 (your local currency) with trade discount of 10%.
10% of 90,000 = 9,000
You were liable to pay 81,000 i.e. 90,000 less 9,000.
If you paid third of the amount due by cheque, this equal to 81,000/3 = 27,000
This left 54,000 payable by cash. You got 10% cash discount.
10% of 54,000 = 5,400.
Actual cash you paid was 54,000 less 5,400 = 48,600.
Having got the figure for each part, the following journal entries will be passed
Debit Purchases Account with 90,000
Credit Cash Account with 48,600
Credit Bank Account with 27,000
Credit Discount Received Account with 9,000
Credit Discount Received Account with 5,400