Question

Purchases 5892.50 in resale items from office mart terms 2/28 n/30. Received po how do i post ?

Answer 1

Answer:

Debit Purchase A/c 5892.50 Credit Office Mart A/c 5892.50

Explanation:

Term  2/28 n/30 - mean that 2 % Discount to be received if paid within 28 days.

That is cash discount and also to be recorded at the time of making payment.