Question

Sold goods to mohan of list price ₹20000 less 15%trade discount and 2%case discount .Mohan paid 40%of goods promptly

Answer 1

At first, we have to deduct the Trade Discount because trade discount is allowed to everyone and not only to a particular customer (consumer) and it is basically provided by the manufacturer of a product or services.

So, 5% of ₹. 20,000 = ₹. 1,000

therefore, new price = ₹.(20,000 - 1,000 ) = ₹. 19,000

now, we have to deduct the cash discount from the new price. Cash discount is generally provided by the Creditor of the entreprise.

so, 2% of ₹. 19,000 = ₹. 380

Therefore, price after cash discount = ₹. (19,000 - 380) = ₹. 18,620

since, Mohan has paid 40% of goods

Therefore, amount received from Mohan = 40% of ₹. 18,620 = ₹. 7,448

Answer 2

Answer:

Your transaction is

Mohan Dr 6800

Discount allowed A/c Dr 204

Cash A/c Dr 9996

To sales A/c 17000

working note:

Trade discount - 20,000×15/100 = 17000 (sales)

promptly payment = 17000 × 40% = 6800

= 17000 - 6800 = 10200

Now,

On ₹ 10200 we will include cash discount of 2%

● 10200×2% = 204 (discount allowed)

● 10200 - 204 = 9996 (cash)

Remaining value of mohan is 6800

17000 - 10200 = 6800

HOPE THIS HELPS