Question

sold goods worth rs 40000. T. D 10% & c. d 5% 70% cash received entry

Answer 1

Answer:

Explanation:

Cash a/c dr. 23940

Discount allowed a/c dr.1260

To sales a/c. 36000

To debtors a/c. 1200

Answer 2

Answer:

Cash A/c   Dr    23940

Sundry Debtors A/c  Dr  10260

Discount Allowed A/c  Dr  1800

        To Sales A/c                          36000

Explanation:

Trade discount received here is 4000 (40000 *10%) So sales value after trade discount is what we record in books and thus it is 36000

There is a further cash discount of 5% being 36000 *5%=1800

Now the rest of sale value is 36000-1800 = 34200

Out the sales value cash is received for 70% which means rest is on the debtor. So cash value is 34200*70% = 23940 and rest of the amount 34200-23940=10260 is owed by the debtor