Question

Sold to haryana stores on cash basis goods worth RS. 500 subject to a trade discount of 15% and a cash discount of 5%. Pass journal entry. Please solve it is urgent ​

Answer 1

Answer:

Haryana stores. A/c. dr. (debtor) 380

discount Allowed A/c. dr. (expense) 20

to sales A/c. 400. (profit)

15 percent Trade discount of 500= 400

5 percent cash discount on 400= 20

cash paid by Haryana stores = 400-20=380