Question

sold goods to Amrit Lal of the list price of Rupees 250000 at 20% trade discount and 10% cash discount Amrit Lal paid 120000 immediately through a cheque write the general entry

Answer 1

Amrit lal a/c Dr 68000
cash a/c Dr 120000
discount a/c Dr 12000
To sales a/c 200000
(being goods sold to amrit lal at 20% trade discount & 10% cash discount )

Answer 2

Answer:

Bank a/c                                      Dr. 1,08,000

Discount allowed a/c                  Dr.12,000

Amrit Lal                                      Dr.80,000

     To Sales a/c                                             2,00,000

Explanation:

                                                                          ( ₹)

Original price                                              2,50,000

Less: Trade discount

         20/100 x 2,50,000                              50,000

Final Price                                                   2,00,000

Now, cash discount applied on the immediate amount paid i.e.₹ 1,20,000.

Therefore, Discount= 10/100 x 1,20,000

                                 = ₹12,000

Hence, discounted price= ₹(1,20,000- 12,000)

                                        = ₹1,08,000

Amount left to be paid by Amrit Lal = ₹(2,00,000-1,08,000-12,000)

                                                           = ₹80,000