Question

SOLD GOODS TO Y RS. 40000 LESS 10% TD AND 4% CD AND PAID 60% AMOUNT

Answer 1

entry of sale with 10%TD is as follows

Y's ac dr 14400
discount allowed or trade discount ac dr 1600
To sales ac 16000
(Being goods sold and discount allowed 10%)

entry of sale with 4% cash discount

cash ac dr 23040
discount allowed ac dr 960
To sales ac 24000
(Being goods sold in cash and discount allowed 4%)