Q: Purchased merchandise on credit for R500 subject to trade discount of 20%... What journals must I use?
A: DR: Purchases R400CR Creditors R400.That's all. You don't record trade discounts as a separate entry of R200, you just net the amount and show the final figure (R400/R500 = 80% or the final figure after 20% discount).
Click here to post comments
Return to Ask a Question About This Lesson!.
Advertise on Accounting-Basics-for-Students.com
Search this website:
All the lessons on this site and much, much more...
Available Now On