Question

Sold goods to sherpa at the list price of Rs.50000 less 20% trade discount and 4% cash discount if the payment is made within 7 days. 75% payment is received by cheque on Jan. 23rd.

Answer 1

Explanation:

50000×20/100=10000

(50000-10000)×4/100=1600

total discount 11600

Selling price is 50000-11600=38400

now 75%of 38400 is 28800

so money received 28800 and pending 9600

hope it helps you thanks

Answer 2

Question:

Sold goods to sherpa at the list price of Rs.50000 less 20% trade discount and 4% cash discount if the payment is made within 7 days. 75% payment is received by cheque on Jan. 23rd. show the journal entry.

Answer:

Explanation:

                In the books of journal Entry

particulars                               amount        amount

goods A/C Dr.                         50000

    To, trade discount A/C                            10000

    To, cash discount A/C                             2000

    To, bank A/c                                             28500

    To, sherpa A/C                                         9500

[ being goods sold to sherpa at the price of Rs. 50000 less 20% trade discount and 4% cash discount. In which 75 % payment is received by cheque ]