Question

roshan purchased from 500items @100 each at 20% trade discount. He is further given 2% cash discount as he made payment for purchases immediately. Determine amount that roshan will debit to purchases account​

Answer 1

Answer:

Roshan purchased form Prem 500 items @ Rs.100 each at

Trade Discount plus CGST and SGST @

each. He is further given

Cash Discount as he made payment for the purchases immediately. Determine the amount that Roshan will debit to Purchases Account.

Answer 2

Answer:

₹39,000.

Explanation:

Trade Discount is not shown in the books of accounts.

So, we deduct 20% from the Cost Price of ₹50,000 in the working notes.

Considering the cash discount to be on the cost price, it amounts to ₹ 1000, so the amount that Roshan will debit will be

₹ 39,000.