Question

Sold goods having invoice price of 20000 to kanak brothers at 5% trade discount on 3 months credit.
Kanak brothers became insolvent and the amount due was recovered @75 paise per rupee.​

Answer 1

Answer:

Purchases A/C. Dr. 15000

Trade discount A/C. Cr.750

Cash A/C. Cr. 14250

Being good purchased with discount

Explanation:

plz thnk my answer

Answer 2

Answer:

1.  Kanak brothers A/c           Dr         19000

         To Sales A/c                                          19000

(Being goods sold on credit to kanak brothers and trade discount allowed)

2. Cash/Bank A/c                   Dr         14250

         To Kanak Brothers  A/c                       14250

(Being Kanak brothers turned solved and paid @75 paise per rupee for goods sold)