Question

Sold goods to z for 10000 at a trade discount of 20% . Next day a cheque was received from him after deducting 5% cash discount

Answer 1

Explanation:

explain the answer

journal entry

goods account debit

to cash account

Answer 2

Answer:

Explanation

                                         JOURNAL BOOKS                                                          

Z's A/c                              8000

  To sales A/c                                         8000

( Being goods sold on credit to z)

Bank A/c                         7600

Discount Allowed A/c       400

  To Z's A/c                                          8000

( Being cheque received in full settlement )

                                                                                                                               

working notes

List price 10000

Trade discount = 20%

Trade discount = 10000 - 20%= 2000

Sales = 10000 - 2000

= 8000

Cash discount = 5 %

Discount amount = 8000 * 5 %

                             = 400

Amount received = 8000 - 400

=7600