Question

sold goods to X list price rupees 4000 trade discount percent and cash discount 5% he paid the amount on the same day and availd discount​

Answer 1

Answer:

cash A/C Dr. 3,420

Discount Allowed A/C Dr. 180

To Sales A/C 3,600

( Being goods sold and cash received)

WORKING NOTES

i. Invoices price of goods 4,000

less: trade discount @10% 400

= 3,600

less: cash discount 5% 3,600

180

= 3,420