Question

Sold to S.chauhan a trade discount of 6% and cash discount of 1% goods of the list price of Rs 15000 he has paid 60% in cash

Answer 1

Answer:

15,000×6÷100=900

N.I.P=I.P-T.D(net invoice price equals to invoice price - trade discount)

N.I.P=15,000-900=14,100

C.D=N.I.P×Rate÷100(cash discount = net invoice price ×CD Ka Rate÷100)

C.D=14,100×1÷100=141

S.P=N.I.P-C.D (sale price = net invoice price-cash discount)

S.P=14,100-141=13,959

He has paid 60% in cash

S.P×60÷100(13,959×60÷100=8,376)

S.Chauhan credit has Rs5,442

Journal entry

Cash A/C................Dr8,376

Cash discount A/C .............Dr141

S.Chauhan A/C....................Dr5,442

To Sale A/C...................13,959