Sold goods for cash 10000
Trade discount 2%
Cash discount 5%
IGST 10%
Journalises the following entry
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Answer:
Cash A/c — Dr 9310
Discount A/c — Dr 490
To sales A/c. 9800
(Being goods sold at 2% TD & 5% CD)
Explanation:
MRP = Invoice price - Trade Discount (TD)
= 10000 - [ 10000 × 2 ÷ 100 ]
= 10000 - 200
= 9800
MRP = 9800
Actual Cash Paid = MRP - Cash Discount (CD)
= 9800 - [ 9800 × 5 ÷ 100 ]
= 9310
Actual Cash Paid = 9310
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