Goods worth ` 10,000 were purchased by B on which the traders allowed ` 500 trade discount and offer to give 5% cash discount if immediate payment is made. The Purchase A/c will be debited by -

Question

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The purchase account is debited by the net amount after the trade discount, which is `10,000 - `500 = `9,500. Cash discounts are not considered in the purchase account entry.

Goods Worth ` 10,000 Were Purchased by B on Which