2. Sold goods to M/s Ram Babu & Brothers for Rs 15,000 on list price, less Trade
Discount 10% and 5% Cash Discount at 7 days. M/s Ram Babu & Brothers settled
their account immediately
Dear Student,
Since the account was settled immediately that means the Cash discount has also been availed. So Net amount paid by M/s Ram Babu & Brothers would be = List price - Trade discount - Cash Discount =
Journal entry would be as follows:
Regards,
Since the account was settled immediately that means the Cash discount has also been availed. So Net amount paid by M/s Ram Babu & Brothers would be = List price - Trade discount - Cash Discount =
Journal entry would be as follows:
Date | Particulars | LF | Amount (in Rs) | Amount (in Rs) | |
---|---|---|---|---|---|
Cash A/c Discount allowed A/c To sales A/c (Sales made after allowing 10% trade discount & 5% Cash Discount) |
Dr. Dr. |
12,825 675 |
13,500 |
Regards,