Multiple choice

Goods worth Rs. 80,000 are purchased from Rajesh & Sons @ 10% trade discount & 5% cash discount. Which is the correct journal entry for this?

  1. Dr. purchase a/c Rs. 80,000 & Cr. Rajesh & Sons. Rs. 80,000.

  2. Dr. purchase a/c Rs. 72,000 & Cr. Rajesh & Sons. Rs. 72,000.

  3. Dr. purchase a/c Rs. 80,000, Cr. Rajesh & Sons. Rs. 72,000 & trade discount Rs. 8,000.

  4. Dr. purchase a/c Rs. 72,000, Cr. Rajesh & Sons. Rs. 68,400 & discount received a/c Rs. 3,600.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The amount for Dr. & Cr. is workout by deducting trade discount i.e. 80,000 - 10% of 80,000 = 72,000.

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