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Discount: (Trade Discount) (Cash Discount)

A business sold goods worth Rs. 20,000. It received a 10% trade discount of Rs. 2,000, bringing the sales amount to Rs. 18,000. It then received a 5% cash discount of Rs. 900 on the discounted amount, bringing the cash received to Rs. 17,100. The transaction is recorded with a debit to cash of Rs. 17,100 and discount of Rs. 900, and a credit to sales of Rs. 18,000.

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Basant Kumar Rastogi
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142 views1 page

Discount: (Trade Discount) (Cash Discount)

A business sold goods worth Rs. 20,000. It received a 10% trade discount of Rs. 2,000, bringing the sales amount to Rs. 18,000. It then received a 5% cash discount of Rs. 900 on the discounted amount, bringing the cash received to Rs. 17,100. The transaction is recorded with a debit to cash of Rs. 17,100 and discount of Rs. 900, and a credit to sales of Rs. 18,000.

Uploaded by

Basant Kumar Rastogi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Discount

(Trade Discount)
(Cash Discount)
Sales Goods Worth Rs. 20000 at 10% Trade Discount And
5% Cash Discount.
Trade Discount = 10% of 20000=2000
Sales = 20000-2000=18000
Cash Discount =5% of 18000 =900
Cash = 18000 900 = 17100.
(Open to f6)
by Discount
900
by Cash
17100.
to Sales
18000
Narration :- (Sales Goods)
(OR)
Sales Goods from Vikas Rs 20000 Trade Discount 5%
And Cash Discount 5%.
(Open to f8)
By
Vikas A/c
19000
To
Sales
19000
Narration :- (Sales Goods)
Ledgers :- Vikas : Sundry Debtors.

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