Question

s. Sold goods to hankaj at list price of £50,000 Less 20%.
Trade Discount and 10% Cash discount and received 20%.
by cheque.​

Answer 1

Answer:

It's journal entry would be

Bank a/c. Dr. 7200

Hankaj. a/c. Dr. 28,800

Discount allowed a/c Dr. 4000

To. sales a/c. 40,000

Explanation:

50,000-20%(trade discount)=40,000

40,000-10%(cash discount)=36,000

36,000×20%=7200. received by cheque

36,000-7200=28,800 still pending to be recieved

that will be debited to hanjak's account