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Purchased goods from x of the list price of 25000 trade discount 20% and cash discount 5% payment was made in cash immediately. What is the journal?
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Purchased goods from x of the list price of 25000 trade discount 20% a...
Journal Entry for Purchasing Goods with Trade and Cash Discount
When a business purchases goods, it records the transaction in a journal. Here is the journal entry for purchasing goods from x of the list price of 25000 with a trade discount of 20% and a cash discount of 5%:
- Date: The date of the purchase
- Account Credited: Cash
- Amount Credited: The amount paid for the goods, which is calculated as follows:
- List price of goods = 25000
- Trade discount = 20%, which is calculated as 25000 * 20% = 5000
- Net price of goods = List price - Trade discount = 25000 - 5000 = 20000
- Cash discount = 5%, which is calculated as 20000 * 5% = 1000
- Amount paid = Net price - Cash discount = 20000 - 1000 = 19000
- Account Debited: Purchases
- Amount Debited: The net price of the goods, which is 20000
The journal entry for this transaction would look like this:
| Date | Account Credited | Amount Credited | Account Debited | Amount Debited |
|---|---|---|---|---|
| DATE | Cash | 19000 | Purchases | 20000 |
By recording this transaction in the journal, the business can keep track of its purchases and expenses. It can also use this information to calculate its profit and loss, and to prepare financial statements.
Community Answer
Purchased goods from x of the list price of 25000 trade discount 20% a...
Purchses a/c. Dr. 20000
To Cash a/c. 19000
To Dis Received. 1000
To Cash a/c. 19000
To Dis Received. 1000
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Purchased goods from x of the list price of 25000 trade discount 20% and cash discount 5% payment was made in cash immediately. What is the journal?
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Purchased goods from x of the list price of 25000 trade discount 20% and cash discount 5% payment was made in cash immediately. What is the journal? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Purchased goods from x of the list price of 25000 trade discount 20% and cash discount 5% payment was made in cash immediately. What is the journal? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Purchased goods from x of the list price of 25000 trade discount 20% and cash discount 5% payment was made in cash immediately. What is the journal?.
Purchased goods from x of the list price of 25000 trade discount 20% and cash discount 5% payment was made in cash immediately. What is the journal? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Purchased goods from x of the list price of 25000 trade discount 20% and cash discount 5% payment was made in cash immediately. What is the journal? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Purchased goods from x of the list price of 25000 trade discount 20% and cash discount 5% payment was made in cash immediately. What is the journal?.
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