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Sold goods Rs.10000 at a trade discount of 10%, amount received Rs. 4250 at a cash discount of 5% |
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Answer» Debit cash ACCOUNT by 4250 Debit cash discount account by 223 Debit CUSTOMER account by 4537 credit sales account by 9000 Explanation: value of goods sold before cash discount =10000-10% = 9000 cash discount is given on cash sales made only. here cash received is 4250 which is after deducting of cash discount AMOUNT on which cash discount is given/amount of sales made at cash = 4250/95%(100%-5%) = 4473 amount of Cash discount =4473-4250 = 223 amount of sales made at credit = 9000-4473 =4537 |
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