Goods worth $R s . 10, 000$ were purchased by $B$ on which the traders allowed $R s . 500$ trade discount and offer to given $5$ % cash discount if immediate payment is made. The Purchase A/c will be debited by ____________.

R s . 10, 000

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R s . 9, 800

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R s . 9, 000

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R s . 9, 500

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Solution

The correct option is C $R s . 9, 500$
The Purchase A/c will be debited by $R s . 9, 500$ . Cash discount will be considered at the time of payment. Cash Discount is applicable if payment made immediately. Here, payment is not made immediately. So, cash discount is not calculated and trade discount is not recorded in books of accounts.

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Similar questions

Journalise the following transactions in the books of Nana.

Debit balances on 1st April 2012:-

Cash in hand Rs 5,000; Cash at Bank Rs 95,000' Land & Building Rs 2,10,000; Furniture Rs 15,000; Debtors Rs 10,000.

Credit Balances on April 1, 2012:- Creditors Rs 10,000; Bank Loan Rs 28,000.

Transactions during the month of April 2012:-

2012 April	1	Purchased goods worth Rs 30,000 for cash less Trade Discount.
	3	Sold goods to Meena Rs 25,000.
	7	Purchased goods from Seema worth Rs 12,000.
	9	Goods costing Rs 1,100 distributed as free samples.
	12	Received an amount of Rs 1,500 from Vikram which was previously written off as bad.
	14	Purchased goods from Bhushan Rs 30,000 at 10% Trade Discount and paid him 1/3^rd amount in cash after getting 5% cash discount.
	20	Received cash gift Rs 10,000 from Father-in-law with which purchased shares of Infosis Co.
	24	Payment of Bank loan with interest Rs 6,000 [Interest amount Rs 1,500]
	28	Sold goods to Anil Rs 50,000 at 10% trade discount and received half the amount in cash, 5% cash discount allowed.
	29	Paid for Advertisement Rs 5,000.
	30	Withdrew cash Bank for personal purpose Rs 2,000.

Journalise the following transactions in the books of Mantri.

2011 June	1	Commenced business with Cash Rs 1,20,000, Goods Rs. 60,000 and Furniture Rs 65,000.
	3	Opened a current account in Bank of Baroda by depositing Rs 75,000.
	5	Cash purchases Rs 35,000.
	9	Cash Sales Rs 55,000.
	10	Purchased goods worth Rs 20,000 from Amit & Co. subject trade discount of 2%
	14	Credit sales to Kalpana Rs 15,000.
	16	Paid cash to Amit & Co. Rs 9,500 who allowed us discount Rs 100.
	19	Goods distributed as free samples of Rs 1,500.
	21	Received Cash from Kalpana Rs 4,800 on account and allowed her cash discount Rs 200.
	24	Returned goods of Rs 750 to Amit & Co.
	26	Purchased shares of Rs 15,000 of HDFC Bank.
	29	Received goods returned by Kalpana Rs 200.
	30	Rent paid by cheque Rs 7,000.

Enter the following transactions of M/s Ketan in Purchase Book, Sales Book, Purchase Returns Book and Sales Returns Book.

2011 March
1	Sold goods to Sudha Stores Rs 29,000 at 10% trade discount.
3	Purchased goods from Meghdoot Traders Rs 37,350 and paid carriage Rs 150.
6	Sudha Stores returned goods of Rs 3,220 (Net).
10	Cash purchases Rs 18,600 and Cash Sales Rs 61,000.
13	Jayesh invoiced goods to us as per our order placed on 28th Feb. 2011 Rs 27,000.
17	Sold goods worth Rs 33,400 to Nandini at 10% trade discount.
20	Returned goods to Jayesh Rs 2,850 as they were defective.
22	Credit purchases from Micky Traders Rs 19,450 and they allowed a trade discount of Rs 150.
23	Nandini returned goods of Rs 1,900 (Gross) as they were damaged.
26	Purchased office furniture on credit from Suhani Furniture Mart Rs 55,000.
29	Purchased goods from Garima Stores for Rs 8,000 and sold the same to Anita at 25% profit on cost.
31	Sent a debit note to Micky Traders for Rs 3,200

Journalise the following transaction in the books of Sethi and Brothers for the month of April, 2012.

Balance on 1st April 2012

Cash at Bank Rs 2,00,000, Cash in hand Rs 2,500; Computer & Printer Rs 90,000 Land & Building Rs 1,80,000; Sundry Debtors Rs 15,000; Bills Receivable Rs 10,000; Sundry Creditors Rs 14,000; Bills Payable Rs 5,000.

Transactions during the month of April were as follows:-

2012 April	1	Purchased goods from Meeta worth Rs 40,000 at 10% trade discount and paid 1/4 amount in cash and 1/4 amount by cheque, for which 5% cash discount is allowed.
	4	Purchased shares of Reliance Company Rs 12,000 and 200 paid as brokerage.
	7	Sold goods to Sunil worth Rs 60,000 at 10% Trade Discount and 5% Cash Discount received 1/3 amount in cash and 1/3 amount by cheque and 5% cash discount is allowed.
	11	Paid Telephone Bill of Proprietor’s house Rs 700.
	14	Paid House Rent Rs 1,500.
	20	Received goods as free samples Rs 2,000.
	23	Purchased Furniture Rs 30,000.
	23	Paid carriage Rs 300 on the above furniture.
	25	Goods worth Rs 6,000 were destroyed by fire and Insurance company admitted a claim to the extent of Rs 4,000.
	27	Paid income tax Rs 6,000.
	28	Paid for printing and stationery Rs 2,000.
	29	Transferred Rs 20,000 from private bank of proprietor to business Bank of Maharashtra A/c.
	30	Salaries paid Rs 5,000 in cash and Rs 10,000 by cheque.

Journalise the following transactions.

2011 Aug.	1	Shri Akshay started his business with Cash Rs 90,000, Building Rs 1,50,000 borrowed from friend Jayesh Rs 40,000.
	3	Paid cash into Bank of Maharashtra Rs 80,000.
	6	Purchased furniture from Mohan and issued him a cheque Rs 10,000.
	9	Credit purchase from Sohan Rs 20,000 less 5% Trade Discount.
	10	Returned goods to Sohan Rs 200.
	13	Credit sales to Amit Rs 6,000 less 2% Trade Discount.
	15	Amit returned goods of Rs 588.
	17	Goods taken by Akshay for his personal use Rs 500.
	18	Paid postage Rs 200 and Electricity bill Rs 900.
	20	Sent a Telegram of Rs 30 to Sohan to supply goods of Rs 9,000 immediately.
	21	Purchased Laptop & Printer of Rs 41,000 from Keshav & Co. and paid him cash Rs 21,000
	27	Paid insurance premium on life of Akshay of Rs 4,000.
	29	Paid Telephone Deposit for new telephone connection by cheque Rs 4,000.
	31	Audit fees paid by cheque Rs 4,500.

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Goods worth Rs.10,000 were purchased by B on which the traders allowed Rs.500 trade discount and offer to given 5% cash discount if immediate payment is made. The Purchase A/c will be debited by ____________.

Goods worth $R s . 10, 000$ were purchased by $B$ on which the traders allowed $R s . 500$ trade discount and offer to given $5$ % cash discount if immediate payment is made. The Purchase A/c will be debited by ____________.