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Purchased guods from Suresh for cash at a list price of 20,000, at trade discount of 20%
2021
and cash discount 519. Purchased goods from Mahesh at a list price of t 8,000 at 20% trade discount.
Returned goods of a list price off 700 to Mahesh as it was defective journal entry?
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Purchased guods from Suresh for cash at a list price of 20,000, at tra...
Transaction Overview
In this scenario, purchases were made from Suresh and Mahesh, including discounts and a return of defective goods to Mahesh. Let's break down the transactions and their corresponding journal entries.

Purchases from Suresh
- **List Price**: ₹20,000
- **Trade Discount**: 20%
- **Cash Discount**: 5%
**Calculations**:
- Trade Discount = 20% of ₹20,000 = ₹4,000
- Net Purchase Price after Trade Discount = ₹20,000 - ₹4,000 = ₹16,000
- Cash Discount = 5% of ₹16,000 = ₹800
- Final Amount Paid = ₹16,000 - ₹800 = ₹15,200
**Journal Entry**:
plaintext
Purchases Account Dr. ₹16,000
Cash Account Cr. ₹15,200
Discount Received Account Cr. ₹800

Purchases from Mahesh
- **List Price**: ₹8,000
- **Trade Discount**: 20%
**Calculations**:
- Trade Discount = 20% of ₹8,000 = ₹1,600
- Net Purchase Price = ₹8,000 - ₹1,600 = ₹6,400
**Journal Entry**:
plaintext
Purchases Account Dr. ₹6,400
Accounts Payable (Mahesh) Cr. ₹6,400

Return of Goods to Mahesh
- **List Price of Returned Goods**: ₹700
**Journal Entry**:
plaintext
Accounts Payable (Mahesh) Dr. ₹700
Purchase Returns Account Cr. ₹700

Summary of Journal Entries
- The total purchases from Suresh and Mahesh are recorded separately, along with discounts and returns. Ensure that the accounts reflect accurate amounts to maintain proper financial documentation.
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Purchased guods from Suresh for cash at a list price of 20,000, at trade discount of 20%2021and cash discount 519. Purchased goods from Mahesh at a list price of t 8,000 at 20% trade discount.Returned goods of a list price off 700 to Mahesh as it was defective journal entry?
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