Question

Sold goods to Prem costing Rs.50000 at a profit of 20% on cost at a trade discount @10% and cash discount @5%. Prem give 1/3 payment at time of sales. Which entry is correct: Choose the correct option out of following, which one is correct:
1) Cash a/c Dr 17100
2) Cash a/c Dr 17100
3) Cash a/c Dr 19000
Disc. Allowed Dr 900
Trade Disc Dr 6000
Disc allow Dr 1000
Prem Dr 36000
Disc. Allow Dr 900
Prem a/c Dr 40000
To Sales a/c 54000
Prem Dr 36000
To Sales a/c 60000
To Sales a/c 60000​

Answer 1

Answer:

50000 Goods Sold

10 % trade discount

50000×10÷100 = 5000

50000–5000 = 45000

50% received by cheque means Bank

45000×50÷100 = 22500

20% by Cash

45000×20÷100 = 9000

10% cash discount

Cash 9000 so ,

9000×10÷100 =900

9000–900 = 8100

Cash received 8100 and 900 is discount

Remaining balance 13500 goes to purchasers account suppose X's A/c

Bank ac dr 22500

Cash ac dr 8100

Discount ac dr 900

X's ac dr 13500

To Sales ac 45000

Dr = Cr = 45000

solved.