Question

purchased goods shyam & co. delhi of list price ₹25000 at 20% trade discount and 3%cash discount on value of goods . paid cgst and sgst @6%each . payment is made immediately and availed cash discount

Answer 1

Purchases 22400
To Cash 21728
To Discount received 672

Working note:
To find the purchase amount
Price - 25000
Less: Trade discount @ 20% 5000

Add: CGST@6% -1200
SGST@6% -1200 2400
Purchase price= 22400

Answer 2

Answer:

Purchases A/c 20000

Input CGST A/c 1200

Input SGST A/c 1200

To Cash A/c 21800

To Discount Received A/c 600

Explanation:

Working Notes :-

Cost 25000

less: Trade discount 5000

20000

Add : CGST (@6%) 1200

SGST (@6%) 1200

22400

Less : Cash Discount 600

600 21800