Question

Sold goods worth list price of 8000 at 10% trade discount and 2% cash discount. 25% received at the time of transection only. The amount posted to discount account will be:

(1 Point)

36 on debit side

144 on credit side

144 on debit side

40 on credit side​

Answer 1

Answer:

144 on credit. side

as IT IS A gain

so for GAINS we use

credit all incomes and gains

Answer 2

Answer:

Answer is (A) 36

Explanation:

Solution:

Selling price: 8000

Less: Trade Discount,

 8000×10/100 = 800

 8000-800 = 7200

Now, finding out the 25% cash availed.

100-25 = 75

7200×75/100 = 5400

7200-5400 = 1800

25% cash availed = 1800

Less: Cash Discount,

1800×2/100 = 36

Final Answer = 36