A trader purchased goods for Rs. 4,000 at a discount of 5%. As he paid the amount immediately, a cash discount of Rs.100 was also allowed. In this case, Purchases A/c is debited by:
A. Rs. 4,000
B. Rs. 3,800
C. Rs. 3,700
D. Rs. 3,900
Answer:B
A trader purchased goods for Rs. 4,000 at a discount of 5%. As he paid the amount immediately, a cash discount of Rs.100 was also allowed. In this case, Purchases A/c is debited by:
A. Rs. 4,000 B. Rs. 3,800 C. Rs. 3,700 D. Rs. 3,900