Question

Sold goods to Rahul for Rs. 10000 at 10% trade discount and 5% cash discount.
​

Answer 1

Answer:

Cash a/c dr 8550

Discount a/c dr 450

To sales a/c 9000

_________•_•________.

Answer 2

Journal Entries in the books of Buyer

Purchase A/C DR 9,000

                To Discount A/C 450

                 To Cash A/C    8,550

( Being goods purchased and discount recieved )

NOTE - Purchase is debited as it is our asset and when asset increases it is debited, Discount is recieved and it will be credited , Cash is also our asset but for purchasing in return we are giving cash so it is decreasing so it will be credited.

Journal Entries in the books of Seller

Cash A/C DR 8,550

Discount A/C DR 450

                To Sales A/C 9,000

( Being goods sold and given discount )

NOTE - As by seeling goods we are recieving cash and it is our asset so it will be debited and goods our also our asset and by selling it we are reducing them so it will be credited .