Question

Purchased goods rupees 20000 less 2%trade discount and 5% cash discount

Answer 1

cost of goods after trade discount

$20000 \times 2 \div 100 = 400$

i.e.

$20000 - 400 = 19600$

cash discount

$19600 \times 5 \div 100 = 980$

journal

purchase a/c. dr19600

to cash 18620

to discount recived. 980

(being purchase goods with2% trade discount & after that 5% cash discount )