Question

sold goods worth 2000rs less 10% trade discount and 2% cash discount to shyam for cash find journal entry.​

Answer 1

Answer:

JOURNAL ENTRY:

Cash A/c                                               Dr           1764

Discount A/c                                        Dr             196

       to Sales A/c                                                                         1960

Cash discount will not be recorded in books of accounts

Discount is 2000 * 2% = 40

Sale is directly recorded at 1960 (2000 - 40)

Trade discount should be recorded in books of accounts

Discount is 1960 * 10%  = 196

Cash received is 1960 - 196 = 1764

Answer 2

Answer:

cash a/c. Dr. RS 17,100

discount alowwed a/c RS 900

To sales a/c RS 18,000(Being goods sold)

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