Question

Sold goods Rs.10000 at a trade discount of 10%, amount received Rs. 4250 at a cash discount of 5%

Answer 1

Answer:

Debit cash account by 4250

Debit cash discount account by 223

Debit customer account by 4537

credit sales account by 9000

Explanation:

value of goods sold before cash discount =10000-10%

= 9000

cash discount is given on cash sales made only. here cash received is 4250 which is after deducting of cash discount

amount on which cash discount is given/amount of sales made at cash = 4250/95%(100%-5%) = 4473

amount of Cash discount =4473-4250 = 223

amount of sales made at credit = 9000-4473 =4537