Accountancy, asked by santhoussachin, 1 year ago

What is a journal entry for received cash from gopal and allowed trade discount rs 50

Answers

Answered by AkashMandal

The journal entry for received cash from gopal and allowed trade discount is :-

Cash A/c Dr.
Discount Allowed A/c Dr. 50
To Gopal A/c

(Being Cash received from Gopal & Allowed Discount)

Answered by Iammanjula

Answer: Suppose, the goods sold are of ₹1000 and allowed a trade discount of ₹50 to Gopal.

Journal Entry: Cash A/C Dr. 950

To Gopal's A/C 950

Explanation:

In accounts, a Trade discount is an amount or a certain percentage that is given by the seller to the buyer at the cost price of goods if purchases in bulk and payment are done within a given time period by the seller or immediately while purchasing. According to the double entry accounting system, the recording of trade discount shows is not to be mentioned in books of accounts. Only a cash discount is avail by the customer should be mentioned in the Books of Accounts.