Question

Sold goods at one rupees 1000 at 5% cash discount

Answer 1

Answer:

cash account Dr. 950

To sales account. 950

Explanation:

cash discount is cut from the amount but any extra account is not opened for it . But in case of trade

cash account Dr.

discount allowed account Dr.

to sales

because we gave discount and that's why this is an expense for us so it will be debited