Question

sold goods of list price Rs.15000 at a trade discount of 10% to A. Got a cheque from A for Rs.23000 and banked in full settlement of his account

Answer 1

Price=15000
trade discount=1500
net price=13500(amount receivable)
outstanding amount receivable=unknown
but cheque from A is used for settling his account...if the amount received is less than amount Receivable then it is called as "discount allowed"..and it should be accounted for