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

Rs.

10, 000

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Rs.

9, 800

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Rs.

9, 000

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Rs.

9, 500

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Solution

The correct option is D Rs. $9, 500$
Discount are two types , trade discount and cash discount.
Trade discount is allowed on the list price hence amount of trade discount is not reflected in books of account.
Net price i.e. after deducting trade discount is only recorded in the books of account.

Purchase Price Rs.10000
Less: Trade Discount Rs.500
Net Purchase Price Rs.9500

Hence, Purchase account will be debited by Rs.9500.

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Q. Goods worth Rs 3000 were purchased on which the trader allowed Rs 200 as trade discount and 5% as cash discount if paid immediately. Purchase a/c will be debited by _____.

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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.
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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.
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	19	Goods distributed as free samples of Rs 1,500.
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Enter the following transactions of M/s Ketan in Purchase Book, Sales Book, Purchase Returns Book and Sales Returns Book.

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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 give 5% cash discount if immediate payment is made. The Purchase A/c will be debited by _________.

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