Question

X sold goods worth Rs. 60,000 to Y taking bill at 3 months, therefare dated 1st July
2019. On 4th August, X
discounted the bill at 5.5% p.a. with his bankers. At maturity
the bill was dishonoured and on that date Y paid Rs. 15,000 with no charges and
accepted another bill at 3 months for Rs. 45,000 at 6% annual interest, but before matu-
rity Y had become insolvent and ultimately he paid his creditors 75 paise in the rupee.
Make the entries in X's journal recording the above transactions​

Answer 1

Answer:

500 trade discount and offer to give 5% cash discount if immediate payment is made. The Purchase A/c will be debited by ______. A. Rs.

Top answer

Discount are two types , trade discount and cash discount. Trade discount is allowed on the list price hence amount of trade discount is not reflected .

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