Question

what will be the journal entries of goods sold to Roma for 5000 at 12% discount and 3% cash discount half of the payment for the receive immediately​

Answer 1

Answer:

here ur answer

Explanation:

Cash A/c Dr. 1940

Cash discount A/c Dr. 60

Roma's A/c Dr. 2000

To sales A/c 4000

( being goods sold to Roma )

Explanation:

trade discount = 20% of 5000 = 1000

trade discount is not recorded in the books of accounts.

cash discount is only allowed on the amount which is being paid in cash at the time of transition.

cash discount = 3 % of 2000 = 60