Question

Sold good to meetu of list price of 200000 at trade discount of 20%

Answer 1

hiii

the answer is

meetu. dr. 160000
discount allowed a/c dr 40000
to sales a/c. 200000

have a nice day

Answer 2

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Meetu A/c - personal A/c, goods are given by krishana , where hes the giver , therefor its credited

purchases A/c - Nominal A/c , its the expenses to the company therefore its debited

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calculation of purchase cost

purchases = 2,00,000

trade discount = 2,00,000*20%

=40000

net purchases = 2,00,000-40,000

=1,60,000

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Journal entry

Purchases A/c Dr 160000

To Meetu A/c 160000

(being credit purchases made)

note : trade discount should be deducted from purchases amount .

no journal entry passed for trade discount