What to do for adjustment no 4. creditors -30000,bills payable -8000
Dear student
1) it will be discount @ 6 % per annum on creditors and bills payable. As payment is due after one month and we pay immediately.therefore, we received discount.its calculated will be as follows:
(a) amount paid to creditors will be Rs 29,850 as we get discount of rs 150 i.e. (30,000 X X = Rs 150). so, rs (30,000 - 150 = Rs 29,850)
(b) amount paid to bills payable will be rs 7,960 as we get discount of rs 40. i.e. (8000 X X = rs 40). so, rs ( 8,000 - 40 = Rs 7,960)
Regards
1) it will be discount @ 6 % per annum on creditors and bills payable. As payment is due after one month and we pay immediately.therefore, we received discount.its calculated will be as follows:
(a) amount paid to creditors will be Rs 29,850 as we get discount of rs 150 i.e. (30,000 X X = Rs 150). so, rs (30,000 - 150 = Rs 29,850)
(b) amount paid to bills payable will be rs 7,960 as we get discount of rs 40. i.e. (8000 X X = rs 40). so, rs ( 8,000 - 40 = Rs 7,960)
Regards