First Step Subtract the TRADE discount 500000*10/100 =50000 RsSo, 500000-50000=450000 RsRemember trade discount is NEVER showed in the journal. SECOND now subtract find the cash discount, 450000 *25/100=112500 RsSubtract it 450000 -112500 = 337500 RsFinally, Purchase a/c Dr450000To cash a/c 337500To discount RECEIVED a/c 112500(being goods purchased) _______________If you find any mistakes PLEASE report _______________#thanks
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