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Johnny purchased goods of Rs.5,000 for cash at 20% trade discount and 5% cash discount. Purchases A/c is to be debited by Rs. Csr,
- a)3,800
- b)5,000
- c)3,750
- d)4,000
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
Johnny purchased goods of Rs.5,000 for cash at 20% trade discount and ...
Calculation of Trade Discount:
Trade Discount = 20% of Rs. 5,000
Trade Discount = (20/100) x 5,000
Trade Discount = Rs. 1,000
Calculation of Net Amount after Trade Discount:
Net Amount = Rs. 5,000 - Rs. 1,000
Net Amount = Rs. 4,000
Calculation of Cash Discount:
Cash Discount = 5% of Rs. 4,000
Cash Discount = (5/100) x 4,000
Cash Discount = Rs. 200
Calculation of Amount Paid:
Amount Paid = Net Amount - Cash Discount
Amount Paid = Rs. 4,000 - Rs. 200
Amount Paid = Rs. 3,800
Debiting Purchases Account:
Since Johnny made a cash purchase, the Purchases Account needs to be debited with the amount paid, i.e., Rs. 3,800.
Therefore, the correct answer is option 'D' (Rs. 4,000).
Trade Discount = 20% of Rs. 5,000
Trade Discount = (20/100) x 5,000
Trade Discount = Rs. 1,000
Calculation of Net Amount after Trade Discount:
Net Amount = Rs. 5,000 - Rs. 1,000
Net Amount = Rs. 4,000
Calculation of Cash Discount:
Cash Discount = 5% of Rs. 4,000
Cash Discount = (5/100) x 4,000
Cash Discount = Rs. 200
Calculation of Amount Paid:
Amount Paid = Net Amount - Cash Discount
Amount Paid = Rs. 4,000 - Rs. 200
Amount Paid = Rs. 3,800
Debiting Purchases Account:
Since Johnny made a cash purchase, the Purchases Account needs to be debited with the amount paid, i.e., Rs. 3,800.
Therefore, the correct answer is option 'D' (Rs. 4,000).
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Community Answer
Johnny purchased goods of Rs.5,000 for cash at 20% trade discount and ...
Purchase a/c ...dr.....4000 to cash a/c............3800 to dis. received.....200 trade discount @20% ₹5000×20/100 =1000 amount of the bill ₹5000-₹1000 ₹4000 cash discount @5% ₹4000×5/100 =200 net payment made =4000-200 =₹3800.. so as per this Q purchase A/c will be debited by ₹4000. Hope this help..
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Johnny purchased goods of Rs.5,000 for cash at 20% trade discount and 5% cash discount. Purchases A/c is to be debited by Rs. Csr,a)3,800b)5,000c)3,750d)4,000Correct answer is option 'D'. Can you explain this answer?
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Johnny purchased goods of Rs.5,000 for cash at 20% trade discount and 5% cash discount. Purchases A/c is to be debited by Rs. Csr,a)3,800b)5,000c)3,750d)4,000Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Johnny purchased goods of Rs.5,000 for cash at 20% trade discount and 5% cash discount. Purchases A/c is to be debited by Rs. Csr,a)3,800b)5,000c)3,750d)4,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Johnny purchased goods of Rs.5,000 for cash at 20% trade discount and 5% cash discount. Purchases A/c is to be debited by Rs. Csr,a)3,800b)5,000c)3,750d)4,000Correct answer is option 'D'. Can you explain this answer?.
Johnny purchased goods of Rs.5,000 for cash at 20% trade discount and 5% cash discount. Purchases A/c is to be debited by Rs. Csr,a)3,800b)5,000c)3,750d)4,000Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Johnny purchased goods of Rs.5,000 for cash at 20% trade discount and 5% cash discount. Purchases A/c is to be debited by Rs. Csr,a)3,800b)5,000c)3,750d)4,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Johnny purchased goods of Rs.5,000 for cash at 20% trade discount and 5% cash discount. Purchases A/c is to be debited by Rs. Csr,a)3,800b)5,000c)3,750d)4,000Correct answer is option 'D'. Can you explain this answer?.
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Johnny purchased goods of Rs.5,000 for cash at 20% trade discount and 5% cash discount. Purchases A/c is to be debited by Rs. Csr,a)3,800b)5,000c)3,750d)4,000Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Johnny purchased goods of Rs.5,000 for cash at 20% trade discount and 5% cash discount. Purchases A/c is to be debited by Rs. Csr,a)3,800b)5,000c)3,750d)4,000Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Johnny purchased goods of Rs.5,000 for cash at 20% trade discount and 5% cash discount. Purchases A/c is to be debited by Rs. Csr,a)3,800b)5,000c)3,750d)4,000Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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