Sold to haryana stores on cash basis goods worth RS. 500 subject to a trade discount of 15% and a cash discount of 5%. Pass journal entry. Please solve it is urgent
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Sold to haryana stores on cash basis goods worth RS. 500 subject to a trade discount of 15% and a cash discount of 5%. Pass journal entry. Please solve it is urgent
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Answer:
Haryana stores. A/c. dr. (debtor) 380
discount Allowed A/c. dr. (expense) 20
to sales A/c. 400. (profit)
15 percent Trade discount of 500= 400
5 percent cash discount on 400= 20
cash paid by Haryana stores = 400-20=380