Question

Sold to Gupta Shawls, 100 shawls @ 200 per shawl on 4th January, 2020. Trade
Discount 25% and Cash Discount 5% if full payment is made within 14 days. Gupta
Shawls sent 50% of the payment on 14th January, 2020 and balance payment on
10th February, 2020.
[Hint: Gupta Shawls will not get cash discount as full payment is not made by it within
14 days.] full journal entry please ​

Answer 1

gupta donot pay all amount within 10 days so cash discount could not dictucted from any payment it is only for confusing

thanks...

Answer 2

Explanation:

cash A/c...................DR. 7500

Gupta A/C ................DR. 7500

to sales A/C. 15000