Question

Sold goods to Ramesh for cash ru 2000 and give him a cash discount of 10%

Answer 1

Answer:

ramrsha/c dr 1800

to sales 1800

Explanation:

sale amt:2000

less:cash discount 200

1800

Answer 2

The answer to the following question is below.

Explanation:

Date      Particular                                      Debit   Credit

              Cash                 a/c     Dr              1,800

              Discount           a/c     Dr               200

                   To Sales       a/c                                   2,000

(Being goods sold to Ramesh on 10% discount)

Discount = Sales*Discount rate

               = 2,000*10%

               =200

Cash revived = 2,000 - 200

                      = 1,800

Cash discount is given to the consumer and debtor to recover money earlier than normal.