Question

what is the journal entry of

Sold goods for Rs. 40000 and received cash after deducting discount 10% cash paid to ABC co. Rs. 25000​

Answer 1

Answer:

To record a payment from the buyer to the seller that involves a cash discount, debit the cash account for the amount paid, debit a sales discounts expense account for the amount of the discount, and credit the account receivable account for the full amount of the invoice being paid.