Question

sold goods costing rs.80000at a profit of 20% on sales less 10% trade discount and 5% cash discount and received 60% by cheque​

Answer 1

Answer:

Bank A/c(60% of 96000) ....Dr. 57600

Trade Discount A/c (W.N.1) ...Dr. 5760

Cash Discount A/c (W.N.2) ...Dr. 2592

Party/Debtor A/c (b/f) ....Dr. 30048

To Sales A/c(W.N.) 96000

Explanation:

Working Notes (W.N.)

Sold at sale price 20% + cost price

80000 + (80000*20%) = 96000

Out of that 60% was paid i.e.,

96000*60% = 57600

1) Calculation of Trade discount

10% of list price i.e., 57600* 10% = 5760

2) Calculation of Cash Discount

Calculated after deducting Trade Discount from list price.

5% of (57600 - 5760) = 2592