Question

Purchased goods of rs 100000 at 10% trade discount form Bhuvan and 1/3rd amount paid by cheque at 5% cash discount.​

Answer 1

Answer:

Explanation:

The entry will be as under

Purchase A/c Dr 90000

  To Bhuvan  A/c         90,000.00

(being purchased goods of Rs 100000 at 10% trade discount form Bhuvan)

Bhuvan A/c Dr   30,000.00

    To Bank A/c         28,500.00

    To Discount A/c      1,500.00

(Being 1/3rd amount paid by cheque at 5% cash discount.)